Wedbush Sees Tesla TSLA at $1,000 Despite Short-Term Downturn, ‘Green Tidal Wave’ Incoming

Eva Fox by Eva Fox May 20, 2021

Wedbush Sees Tesla TSLA at $1,000 Despite Short-Term Downturn, ‘Green Tidal Wave’ Incoming

Photo: David Paul Morris

Wedbush sees Tesla (NASDAQ: TSLA) at $1,000 despite the short-term downturn today, as a "green tidal wave" is coming for the industry.

Wedbush analyst Dan Ives believes Tesla will cost $1,000 and the recent downturn will be short-lived, he said CNBC's Squawk Box on May 19. Tesla is currently experiencing a chip shortage, which has led to low sales in China. It is this factor that has a strong, but in fact, only short-term, impact on the price. Wedbush is not waiving "the white flag here on the Tesla bull thesis," said Ives, adding that a "green tidal wave" is coming for the industry. He confirmed that the firm expects the stock to be worth $1,000 in one year.

Tesla's brilliant Q1 2021 production and delivery record prompted Wedbush in April to raise its Tesla price target to $1,000 with a long-term target price of $1,300 and change its rating to Outperform. 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 addition, Wedbush believes that 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.

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