Tesla (TSLA) PT Raised to Street High $1,250 at Wedbush; Bull Case Raised to $2,000

(Updated - July 2, 2020 6:25 AM EDT)

(updated to add analyst comments)

Wedbush analyst Daniel Ives raised the price target on Tesla (NASDAQ: TSLA) to $1,250.00 (from $1,000.00) while maintaining a Neutral rating. The firm's Bull Case was raised to $2,000.

"We believe with demand for Model 3's ramping stronger than expectations in China heading into the summer timeframe, the lockdown easing in the US/Europe, and some potentially "game changing" battery developments on the horizon (Battery Day another key catalyst) that Tesla's stock likely has room to run further," Ives commented. "While the stock has been roaring higher, we believe the main fundamental catalyst continues to be the massive China market which is showing clear signs of a spike in demand for Musk & Co. heading into the rest of this year."

The analyst said a strong 2Q delivery number is likely in the cards. Street deliveries are looking for 70k with 62k Model 3/Y deliveries in the quarter. They believe Tesla with a very strong end to the quarter likely could now be in the 85k to 90k range

Ives said the strong Model 3 demand out of China "remains a ray of shining light for Tesla in a dark global macro and appears to be on a run rate to hit 100k unit deliveries in the first year out of the gates for Giga 3 which is driving some strength for Tesla as well as Model Y deliveries starting to ramp as well."

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