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Wedbush Securities adjusted its Tesla (NASDAQ: TSLA) price target to $360 after a 3:1 split. This would equate to $1,080 per share before the split, corresponding to an 8% increase from $1,000 previously.
Wedbush Securities analyst Dan Ives tweeted that the firm will raise its price target on Tesla shares to $360 per share, after the 3:1 split, which equals $1,080 per share, before the split. This also reflects an increase from the previous $333 per share, which was equal to $1,000 per share before the split.
The 8% increase in price target reflects changes that have taken place in recent weeks. In particular, we are talking about the 3:1 split itself, which can increase the influx of investors, as a lower purchase price makes the shares more attractive and affordable. In addition, Tesla has improved its production at Giga Shanghai, which is now its key factory and will have a positive impact on delivery figures at the end of this quarter and beyond.
We are adjusting our pre-split $1,000 price target ($333 post split) to $360 reflecting the 3:1 split as well as improved production from Tesla out of its key China Giga factory during the September quarter with clear momentum heading into year-end. Maintain Outperform rating.— Dan Ives (@DivesTech) August 24, 2022
Undoubtedly, the expansion of production capacity at Giga Shanghai will have a strong positive effect. Although the Model Y and Model 3 production lines closed alternately in July and early August, the overall increase in production could catch up and ramp up towards the end of this quarter. Now, the annual capacity of Giga Shanghai is expected to increase to 1.1 - 1.2 million vehicles per year, which is about 50% more than before.
© 2022, Eva Fox | Tesmanian. All rights reserved.
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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.