Aly Song / Reuters
With Battery Day and the call to pick up on the horizon, Tesla’s rally in 2020 may still be in its infancy, according to Wedbush analyst Dan Ives.
The analyst raised his value target for automaker’s inventories to $1,900 from $1,800 on Monday, while maintaining a “neutral” inventory rating. The new 12-month target is a 15% increase since Friday’s close and would set inventories at record levels.
Read more: Inside Eagle Investors, the 20,000-member online network led by 2 Indiana University academics leading the Generation Z intraday trading revolution
Elon Musk is expected to unveil a number of “revolutionary” battery technologies at the September 22 event, Ives said. Such inventions are for Tesla’s leadership in the electric vehicle segment, and analysts estimate that the automaker could advertise a battery-powered mobile capable of traveling a million kilometers. If Tesla can also reveal innovations in battery day production costs, it can turn the company into a leading battery supplier and expand its overall addressable market, the analyst said.
The growing call for cars in China has also led to an increase in Ives’ target. Wedbush expects sales in the country to increase until the end of summer, as Model Y production in Shanghai increases. According to Ives, falls in value in the United States and China can further stimulate demand as the global economic environment improves and the hurdles rise.
The Chinese call is the “cornerstone of success” for Elon Musk and Tesla, and the company is again on track to meet its ambitious target of 500,000 deliveries for the year, he added.
Tesla closed at $1650.71 on Friday, an increase of about 298% since the start of the year.
Read more markets Insider and Business Insider marketplace:
A chief strateque wall street said buying reasonable stocks of ‘powerful micro capitalizations’, which have performed even higher than their high-capitalized peers since the collapse of the coronavirus
Goldman Sachs outlines four issues of the effects of the quarter that shape the long-term of the economy
Market Insider