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Analyst Wedbush Securities raised its annual price forecast for Tesla TSLA shares to $800.
Today, Wedbush Securities analyst Dan Ives wrote, in a research note for clients, that Tesla seems to be “turning the corner” in terms of both demand and recovery after a coronavirus-induced global economic halt.
Ives wrote he raised his Tesla stock price forecast to $800. This is about a third higher than its previous target, although he held pat on the neutral rating he’s had on the company’s shares for more than a year.
"While Tesla (and every other auto manufacturer) is navigating this unprecedented Covid-19 environment, the company took a major step forward around fulfilling demand and production concerns with the Fremont artery now up and running after the Musk vs. Alameda County stand-off got resolved," Ives wrote in his note.
"While 2Q delivery numbers remain in flux due to a host of logistical issues as well as overall lockdown conditions now starting to ease across the US and Europe, it appears underlying demand for Model 3 in China is strong, with a solid May and June likely in the cards and clear momentum heading into 2H," Ives wrote.
Ives' positive outlook coincided with the fact that Tesla announced another decrease in car prices in North America. Tesla showed that prices for the Model 3, its cheapest and most popular car, fell $2,000 and now start at $37,990. Tesla also gave a $5,000 discount to its Model S Performance, which currently costs $94,990. It did the same for Model X, the price of which starts at $80,000, but left the prices for its latest Model Y unchanged.
Tesla also lowered its prices in China for imported Model S and Model X cars by 29,000 yuan, although it remains unchanged for its Model 3 built in China.
Elon Musk and Tesla CFO Zachary Kirkhorn hinted that the company's price would drop in China during TSLA's Q1 2020 Earnings Call. Kirkhorn explained that as Tesla continues to improve its efficiency in Giga Shanghai's production, prices would drop.Follow @EvaFoxU
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.