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Tesla Will Hit 500,000 Deliveries for 2020, Analysts Predict

Two analysts says Tesla should reach its goal of 500,000 deliveries for 2020.
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Tesla  (TSLA) - Get Tesla Inc Report shares rose in premarket trading Wednesday following analysts’ optimistic fourth-quarter delivery estimates for the electric vehicle company. 

Two analysts said Tesla should reach its goal of 500,000 deliveries for 2020.

“With 180k for 4Q the line in the sand, we believe given the underlying strength we are picking up in China as well as a late push in Europe and the U.S., that 190k-200k is well within reach,” Wedbush analyst Daniel Ives wrote in a commentary.

“As such, this would enable Tesla to achieve its 500k delivery number for the year, which was not even on the map for the Street going back to the late spring/early summer timeframe,” Ives said.

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He added that “while there are some logistics speed bumps throughout Europe that could derail a number of deliveries in the next few days, the theme of the Tesla story and overall global EV demand continues to be around white hot demand coming out of China.”

Ives maintained his neutral rating on Tesla with a $715 price target. 

The stock traded at $672.93, up 1.04% in premarket trading, and has skyrocketed 696% year to date through Tuesday.

Credit Suisse analyst Dan Levy also has a neutral rating on Tesla, with a $400 price target. He forecasts 183,000 deliveries this quarter, above what he sees as the sell-side consensus for 163,000 and the likely buy-side consensus for 175,000 to 180,000 deliveries. That would take Tesla to 502,000 deliveries for 2020 as a whole.

Levy's estimates call for a record December for Tesla. But he thinks that can happen in light of Tesla's "typical quarter-end wave."