At the end of 2019, Tesla set its annual guidance at 500,000 vehicle deliveries for 2020. That was before the COVID-19 pandemic forced a two-month shutdown of their main manufacturing facility in Fremont during Q2.
Despite that rather large bump in the road, Tesla reiterated their annual guidance of 500,000 vehicle deliveries after Q2. That lead many to question how Tesla was going to pull it off.
According to Wedbush Securities analyst Daniel Ives, China could be the answer.
In a note to investors this week, Ives said if Tesla can continue its record breaking sales numbers from November into December, the automaker will likely exceed its target.
“We believe the company is tracking to another strong month of December in China which could be the tipping point to get Musk & Co. to hit/exceed its 500k annual delivery target, an achievement not even on the map for the Street going back to the late spring/summer timeframe,” Ives said (via Business Insider).
The analyst said in his bull case scenario, Tesla (TSLA) could rise to as much as $1,000 per share, with a boost from demand in China.
“The China growth story is worth at least $100 per share in a bull case to Tesla as this EV penetration is set to ramp significantly over the next 12 to 18 months, along with major battery innovations coming out of Giga 3 and elsewhere throughout the China EV supply chain.”
Legal Disclaimer – Darryn holds shares of Tesla, Inc. (TSLA) and has no plans to change any positions within 72 hours.