Wedbush Securities analyst Daniel Ives says pent-up demand in China could help Tesla reach 1 million vehicle deliveries in 2022.
In a note to investors Wednesday, Ives cited “eye-popping” demand for electric vehicles (EVs) in China across all price points, as well as the possibility of the Biden administration’s increases to tax credits in the US as reasons for the 1M delivery target.
This new estimate from Ives is one year sooner than his previous estimate for Tesla to reach 1M deliveries.
With his optimistic outlook for the future , Ives also believes the automaker will reach 500K vehicles deliveries this year. To reach that target Tesla would need to deliver more than 180,000 vehicles in Q4. Ives said recent increases in sales in China and high delivery numbers coming out of Europe point to the automaker meeting its annual guidance. (via Business Insider)
“With 180k for 4Q the line in the sand [to hit 500k target], we believe given the underlying strength we are picking up in China as well as a late push in Europe and the US that 190k-200k is well within reach,” Ives said.
Ives maintained his “Neutral” rating on Tesla, keeping his price target at $715, with a bull-case target of $1,000. Tesla (TSLA) is up 3% in trading on Wednesday.
Legal Disclaimer – Darryn holds shares of Tesla, Inc. (TSLA) and has no plans to change any positions within 72 hours.
