Tesla Shares Push Higher After Wedbush Analyst Ives Cites Rising Demand for the Model 3

After investor skepticism earlier this year over Founder Elon Musk's ambitious plans and worries about a global economic slowdown, Tesla's stock has rebounded in the past three months.
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Tesla (TSLA) - Get Report shares motored higher Thursday after a Wedbush analyst argued that the apparent turnaround by the electric-vehicle maker is for real.

At last check Tesla's stock rose 1% to $429.44 a share after Wedbush analyst Daniel Ives wrote that sales and demand for the Palo Alto, Calif., company's crucial Model 3 are on an "upward trajectory" in the fourth quarter. 

Consumer demand in both the U.S. and Europe should enable Tesla to meet its 2019 objective of 360,000 to 400,000 new-vehicle deliveries, Ives said, according to Bloomberg.

The Wedbush analyst is also bullish on Tesla's prospects in China. The electric-car maker's Shanghai Gigafactory kicked off trial production in October after a fast-and-furious 10-month construction period.

Tesla now is planning a major expansion of the plant after landing a $1.4 billion loan from Chinese banks.

Wedbush's Ives raised his price target on Tesla to $370 a share from $270.

"If Tesla is able to maintain this level of demand and profitability going forward, especially in Europe and China, then the stock will open up a new chapter of growth and multiple expansion," Ives wrote.

After investor skepticism earlier this year over Founder Elon Musk's ambitious plans and worries about a global economic slowdown, Tesla's stock has rebounded in the past three months.

"Tesla's rally has been breathtaking," with its stock appreciating 76%, Zacks Investment Research recently noted.

Tesla's better-than-expected quarterly results in October, when it surprised analysts with a profit, and rising Model 3 orders are helping fuel the rise in the share price, Zacks noted.