Tesla Model Y
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Shares of Tesla Inc. rallied into record territory Monday, after Wedbush analyst Dan Ives boosted his base-case price target, and said he envisions a scenario in which the electric vehicle market leader’s stock reaches $1,000.
The stock
TSLA,
surged 2.5% in premarket trading, which puts it on track to open above the Nov. 19 record close of $499.27.
Ives raised his base-case stock price target to $560 from $500, while reiterating the neutral rating he’s had on Tesla since April 2019.
But Ives raised his bull-case price target by 25%, to $1,000 from $800.
“With the sustained path to profitability and S&P 500 index inclusion achieved, the Tesla bull story is now all about a stepped up EV demand trajectory into 2021,” Ives wrote in a note to clients.
Don’t miss: Tesla to join S&P 500, stock surges.
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And he said he is now seeing “a major inflection of EV demand globally, with expectations that EV vehicles ramp from the current 3% of total auto sales to 10% by 2025.
“We believe this demand dynamic will disproportionately benefit the clear EV category leader Tesla over the next few years especially in the key China region which we believe could represent ~40% of its EV deliveries by 2022, given the current brisk pace of sales with 150K+ deliveries in its first year out of the gates with Giga 3,” Ives wrote.
He said that while the lower-priced Model 3 remains Tesla’s core driver, the new designs around the Cybertruck and Model Y crossover SUV should help the company achieve its million-delivery target by 2023, with 2022 not out of the question.
The stock has gained 26.2% so far this month through Friday, and soared 485.2% year to date, while the S&P 500
SPX,
has gained 10.1% this year.