Wedbush Analyst: Tesla (TSLA) Stock Can Jump 50% Based on Q1 Delivery Numbers

UTC by Steve Muchoki · 3 min read
Wedbush Analyst: Tesla (TSLA) Stock Can Jump 50% Based on Q1 Delivery Numbers
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Tesla (TSLA) stock received positive ratings from other notable Wall Street analysts as well.

Tesla Inc (NASDAQ: TSLA) stock could jump over 40% from Monday’s close based on the first quarter deliveries according to Wedbush analyst Dan Ives. In a note to investors on Sunday, Ives upgraded Tesla stock to Outperform from Neutral and further upped his price target from $950 to $1,000. Besides, Ives gave his long-term bull case target of $1,300.

Notably, Tesla stock closed Monday trading at $691.05, up 4.43%. Meanwhile, Tesla stock had added approximately 0.13% during the pre-market session to trade at around $692.

According to Ives, Tesla reported better than expected sales in the first quarter despite challenges in the supply chain of critical products.

“In our opinion, the 1Q delivery numbers released on Friday were a paradigm changer,” he said in a note. “We now believe Tesla could exceed 850k deliveries for the year with 900k a stretch goal, despite the chip shortage and various supply chain issues lingering across the auto sector. Eye-popping delivery numbers coming out of China cannot be ignored with the trajectory on pace to represent ~40% of deliveries for Musk & Co. by 2022,” he further explained.

Wedbush Analyst on Tesla Stock

In his opinion, Ives noted that the electric vehicle industry is on verge of global adoption. More developed economies are focused on giving incentives to the electric vehicle industry to compete with the traditional automotive industry. Tesla has been working on not only delivering as per the demand but also increasing the production capacity. Moreover, the company has been delivering quality services and products in comparison to its competitors.

“With 3% of auto sales EV today globally and on a trajectory to be 10% by 2025, we believe the EV market is just starting to play out as the auto sector is transformed green over the coming years with Tesla leading the charge,” wrote Ives.

According to him, strong demand in Nio Inc (NYSE: NIO) and Xpeng Inc (NYSE: XPEV) products is an indicator that the global EV demand is skyrocketing.

Tesla stock further received positive ratings from other notable Wall Street analysts. JPMorgan analysts raised Tesla stock price target from $135 to $155. Further, JPMorgan analysts noted that they expect the company to deliver 800,000 unit vehicles by the end of this year. They further noted that the company could deliver 1 million vehicles in 2022, and 1.23 million vehicles in 2023.

On the other hand, Jeffrey Osborne at Cowen raised the Tesla stock price target to $573 from $545. However, Osborne kept his rating in the Tesla shares at a Hold rating. “We were pleased to see production at 180,338 for the quarter, suggesting that the lingering semiconductor shortage plaguing other auto OEMs is not affecting Tesla in a big way despite the two shutdowns at Fremont in February,” he said.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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