Tesla’s inventory could enlarge its epic uptick if the case were true, according to a Wall Street analyst.
Daniel Ives of Wedbush thursday raised his bullish value target for the automaker’s shares to $2,500 from $2,000 following the company’s best-than-expected second-quarter earnings report on Wednesday.
“Last night, Tesla reported its June effects that were much greater than expected since Musk and Co. he handed over an Aaron-Judge as a quarter shot in the house and continues to defy skeptics,” Ives wrote in a note. It also raised its base value target to $1,800 from $1,250 and kept its fair score at the company.
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Beyond counterfeit vehicle deliveries, “investors keep thinking about TSLA’s profitability,” Ives wrote.
The company reported GAAP gross margins that exceeded expectations of Ed Wall Street and adjusted EBITDA which, according to Ives, “speaks of a business style that still has particularly low prices and higher production efficiency, even in the face of complicated global cases due to COVID-19. . “
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Ives has also focused on Tesla’s functionality in China, where he sees the need for electric cars to accelerate and has long referred to it as the “axis of success.” In the company’s earnings report, China “seemed to be the star of the screen and a major source of strength in 2T based on our research and industry knowledge with a physically powerful boost in 2H and 2021,” he wrote.
He also said, “Tesla also announced that the Cybertruck plant would be in Austin, Texas, a strategic location in our opinion.”
Tesla’s shares have won about 294% since the beginning of the year.
Market Insider