Photo AP / Mark Lennihan
In the electric vehicle market, “it’s Tesla’s global market and everyone will pay the rent,” Daniel Ives, senior equity studies analyst at Wedbush, told CNBC on Thursday.
Although Tesla’s inventory fell by about 7% Thursday morning on Wall Street, its inventories have increased by nearly 450% so far this year, with an increase of about 30% in the largest NASDAQ index.
“It’s an inventory that still has a lot more room for manoeuvre, those who hate it continue to hate it as inventory increases,” Ives said of Tesla’s inventory.
The company is preparing a “million-mile” battery that can be especially useful for electric cars and is expected to be announced on its next “Battery Day” on September 22.
The combination of a million-kilometre battery, a parity of value compared to classic cars and third-party battery suppliers, and a strong order from China would help bring its actions to life, Ives said.
Despite a possible “slower” and higher festival in the future, Tesla’s dominance in the electric vehicle market would pose a significant threat in the coming quarters, he said.
“Everyone goes after Tesla in terms of the electric vehicle market,” he said, adding that the company had a “goal on its back.”
On its first day of operations after the division, Tesla was the seventh largest company in the U.S.But it’s not the first time In terms of market capitalization.
“We, the percentage division resolution, was a smart resolution through Tesla and its board of directors, given the parabolic movement of stocks over the next six months,” Ives said on a note.
Separately, on Wednesday, Bank of America raised its Tesla value target to $550 from $350, marking an increase of approximately 16% since Monday’s close.
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