This week TSLA shares reached new all-time highs, coming within inches of reaching $500 by getting as high as $498.80 late in the week. Shares ended the week closing at $478.15. But one Tesla analyst believes the California automaker will go even higher.
Piper Sandler Cos. raised their price target for TSLA from $423 to $553, one of the highest price targets by any analysts according to Bloomberg. They noted the reason for their increase was due to the large growth potential in the largest EV market in the world, China, after Gigafactory Shanghai production and deliveries have now begun.
Add to that the announcement that the upcoming Model Y will also be produced in China, Piper analyst Alexander Potter says that Chinese volume along could reach 650,000 units per year, 1.5x the current worldwide production.
“Bottom line: If Tesla’s Model 3 market share in the United States can be replicated in China — and if this logic extends also to Model Y — then Tesla’s annual volume in China alone would eventually exceed 650k units.”
In 2019, Tesla delivered 112,000 vehicles worldwide, allowing Tesla to meet their annual guidance of 367,200 vehicles for the year.