Wedbush analyst Dan Ives raised the price target for Tesla (NASDAQ: TSLA) to $500 from $475. The price was raised ahead of the announcement of financial performance, net income, and cash flow results for Q3 2020, which will be announced on October 21st.
Ives affirmed the stock's neutral rating, however, he raised his target price to $500 from $475. He wrote that this is due to Tesla's improved production efficiency and the company's brilliant success in China.
"[We] believe Tesla's improved manufacturing efficiency and shining Giga 3 success in China will be on full display later this week and lead to another strong bottom-line performance which should beat the Street in our opinion."
In the note, the analyst wrote that the firm believes Tesla can reach 500,000 deliveries in 2020, which was unattainable 6 months ago, amid COVID-19.
"In terms of overall unit demand heading into year-end we believe Tesla is on pace to impressively achieve in the area code of 500k units for the year, a line in the sand that was a pipe dream six months ago as Tesla (and other auto players) have navigated this unprecedented COVID backdrop."
On October 21, after the closing bell, Tesla will announce its Q3 2020 results. At the moment, it is known that the company has surpassed analysts' forecasts and delivered 139,300 vehicles in the last quarter.
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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.