Tesla's (NASDAQ: TSLA) brilliant production and delivery numbers in Q1 2021 sparked a wave of positive changes in forecasts from analysts. Wedbush raises Tesla's price target to $1000 with a long-term bull case price target of $1,300 and changes its rating to Outperform.
Tesla produced an impressive number of vehicles in Q1 2021, reaching 180,338 units, and delivered an incredible 184,800 units, surpassing all existing records set by the company previously. This sparked even stronger confidence in the manufacturer and led to an upgrade from Wedbush Securities on Tesla to an Outperform rating from Hold.
Firm analyst Dan Ives wrote that the published delivery data changed the paradigm showing that demand for Model 3 and Y, the company's two most affordable vehicles, is reaching the next, completely new stage of growth around the world, driven by a global green tidal wave.
"In our opinion the 1Q delivery numbers released on Friday was a paradigm changer and shows that the pent-up demand globally for Tesla's Model 3 / Y is hitting its next stage of growth as part of a global green tidal wave underway."
Wedbush reckons Tesla deliveries in 2021 could surpass 850,000 units, with a prospect of 900,000, despite the continued worldwide chip shortage and some supply chain problems in the automotive sector. While the electric vehicle sector and Tesla stock itself have been under significant pressure this year, the firm believes the situation on Wall Street is changing. Ives points out that the Californian manufacturer has achieved eye-popping shipping figures in China, and in 2022, they will account for roughly 40% of all Tesla's deliveries.
"While the EV sector and Tesla shares have been under significant pressure so far this year, we believe the tide is turning on the Street and the 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."
Wedbush believes Tesla's profitability-free cash flow profile significantly improves over the next three to four years and forecasts $20 of annual EPS potential by 2026 and could be a big event for the entire EV sector. The firm's price target for Tesla has been raised to $1,000 and a bull case price target of $1,300 has been set. The stock is listed by the firm as a top pick of the Green Tidal Wave thesis.
© 2021, Eva Fox. 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.