Wedbush Raises Tesla TSLA Bull Case from $1,500 to $1,800, Reiterates $1,100 PT

Wedbush Raises Tesla TSLA Bull Case from $1,500 to $1,800, Reiterates $1,100 PT

Wedbush analyst Daniel Ives reiterated an Outperform rating and $1,100 price target on Tesla (NASDAQ: TSLA) while raising his bull case from $1,500 to $1,800.

Wedbush raised its Tesla bull case from $1,500 to $1,800 and reiterated its $1,100 price target on Tesla shares. The bull case was lifted to $1,800 as the analyst expects the manufacturer's factory in China to continue ramping up production. Ives estimates that car deliveries from Giga Shanghai will account for 40% in 2022. This is likely as the Chinese factory is already working on producing about 50,000 vehicles every month.

Ives said “[t]he linchpin to the overall bull thesis on Tesla remains China, which we estimate will represent 40% of deliveries for the EV maker in 2022. While PR/safety headwinds were front and center in China earlier this year, we have seen this demand trend reverse aggressively in a bullish way for Tesla into year-end with the company now on a ~ 50k monthly run-rate for China in 4Q that could ramp further into early 2022."

On October 23, Tesla shares originally received their $1,100 price target from Wedbush. Ives had increased the price target on Tesla from $1,000 while maintaining an “Outperform” rating. Ives noted that Tesla delivered solid top-line results, which were in line with analyst expectations. And the company margins blew away the Street’s expectations. These results are expected to speak to a new Tesla margin story going forward.

The auto gross margin was over 30% and roughly 250 bps ahead of Wall Street expectations, which highlights the massive leverage in the Tesla story now starting to take hold with Giga China now being front-and-center. And now, Tesla is on an EBITDA run-rate of about $13 billion, which is a staggering number considering the company is still in the early stages of building out its global EV moat.

H/t @SawyerMerritt/Twitter

© 2021, Eva Fox | Tesmanian. All rights reserved.


We appreciate your readership! Please share your thoughts in the comment section below.

Legal Disclaimer --
This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.

About the Author

Eva Fox

Eva Fox

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.

Follow me on X

Reading next

Banks Continue to Hire Crypto Talent as Industry Job Postings Surged  40% in 1H 2021
Tesla Attends the 4th China International Import Expo, Presents Giga Shanghai Technologies

Tesla Accessories