Despite the recent struggles of Tesla’s (TSLA) share price, Wedbush Securities analyst Daniel Ives is remaining optimistic and sticking with his $1,000 price target for the automaker.
Citing strong demand, particularly in China, Ives said Tesla will see its second quarter sales comfortably increase to above 200,000 units. This is even considering “perceived headwinds” like the impacts of a global chip shortage, recent negative press surrounding the automaker in China, and more competition from other EV makers.
Tesla delivered a record 184,877 vehicles in Q1 2021, despite producing zero Model S/X vehicles.
“The main line in the sand now for the bulls and bears is not the near-term chip shortage in our opinion (which is temporary), but rather Tesla’s ability to further penetrate China. Now it’s about Musk playing nice in the sandbox which appears to be happening over the last few weeks around safety issues and making sure that Tesla does not see any stumbles/government crackdown in China which is poised to represent 40%+ of global deliveries by 2022,” Ives said in a note to investors Monday.
In maintaining his $1,000 price target, Ives also reiterated his “outperform” rating for the stock.
Tesla (TSLA) is trading down more than 5% on Monday following CEO Elon Musk’s debut performance on Saturday Night Live (SNL) over the weekend.
Disclaimer: Mike is a TSLA shareholder and has no plans to change positions within 72 hours.
Source: Business Insider