Bull case scenario of the electric vehicle giant Tesla Inc! has been raised to $3,500 by Wedbush analyst Daniel Ives despite the stock rising about 45% since announcing a 5 for 1 stock split on Aug. 11.
Daniel Ives reiterated his Tesla Stock neutral rating with a $1,900 price target but raised his bull-case scenario target to $3,500 from $2,500.
This is the third time Daniel is raising his Bull-Case scenario this month.
- On the 12th of August, He maintained a Neutral rating and a price target of $1,800 on the shares, with a $2,500 bull case target.
- On the 17th of August, Daniel Ives Raises Tesla Stock Price Target To $1900, From $1800.
- On the 23rd of August, he is out again with a new upgrade but this time he reiterated his Neutral rating and $1,900 price target for Tesla but raised his bull-case scenario target from $2,500 to $3,500.
According to Ives Tesla has enough upside potential due to its potential in the Chinese auto market and its potential to be a global battery powerhouse.
“The pent-up demand in the China EV market for Model 3s and recent price cuts are creating a perfect storm of demand for Musk & Co. in this key market,” Ives wrote in his research report.
“Model 3 demand out of China remains a linchpin of success and appears to be on a run rate to hit 150k unit deliveries in the first year out of the gates for Giga 3 which is driving some strength for Tesla as well as Model Y deliveries starting to ramp as well,” he wrote in a note.
Battery innovations are the other piece of Ives’ puzzle. “Musk & Co. are slated to announce several new potential game-changing battery developments at its highly anticipated Battery Day on Sept. 22,” Ives said. “The company is getting closer to announcing the million-mile battery. In our opinion this battery technology will be very advanced, potentially last for decades, withstand all types of weather/terrain, and be another major milestone for the Tesla ecosystem.”
Tesla battery day is set for September 22, and according to Ives If battery technology and Chinese demand come up roses for Tesla, then the stock will keep working.
“Tesla could now have $35 [plus] of earnings power by 2025/2026 [versus] our prior estimate of $20 to $25,” he adds.
According to Tesla.com, The 2020 Annual Meeting will be held on Tuesday, September 22, 2020, at 1:30 p.m. Pacific Time.
Tesla’s separate Battery Day event will follow immediately after the conclusion of the 2020 Annual Meeting.
Live video webcasts of the 2020 Annual Meeting and Tesla’s Battery Day event will be accessible to the general public at www.tesla.com/2020shareholdermeeting.
To accommodate ongoing public health requirements and travel considerations, Tesla is also providing any stockholder as of July 31, 2020, the means to join the 2020 Annual Meeting virtually at www.meetingcenter.io/234436330. The virtual meeting will feature the same live video webcasts accessible to the general public, plus the option to submit votes and written comments on meeting agenda items. To join the virtual meeting, you will need the password, which is tsla2020, and a 15-digit secure “control number” unique to you, which you may obtain as follows:
- If you are a “stockholder of record” with shares registered directly in your name with our transfer agent, Computershare Trust Company (a minority of Tesla stockholders), you can find the control number on the Notice of Internet Availability or paper proxy card that was sent to you (please check that it is for the meeting as scheduled for September 22, 2020, NOT as previously scheduled for July 7, 2020).
- If you are a “beneficial owner” and hold shares through a broker, bank, or other organization (the vast majority of Tesla stockholders), you will have to register in advance to obtain a control number. Please ask your broker, bank, or organization for a “legal proxy” for the 2020 Annual Meeting and submit a copy of it from your e-mail address with “Legal Proxy” in the subject line to email@example.com. If your request is received no later than 2:00 p.m. Pacific Time on September 17, 2020, you will receive a confirmation e-mail with your control number.