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Tesla Hits Record After Wedbush Lifts Price-Target to $1,900

Tesla gains after Wedbush Securities analyst Daniel Ives raises his one-year price target yet again, this time on ongoing demand for its electric cars in China.

Tesla  (TSLA) - Get Tesla Inc Report shares inched higher into record territory on Monday after Wedbush Securities analyst Daniel Ives raised his one-year price target on the electric car and battery maker, citing what he sees as ongoing demand for Tesla cars in China.

Tesla stock ended the trading day Monday up 11.20% at an all-time closing high of $1,835.64 after the influential analyst raised his one-year price target on the shares to $1,900 from $1,800, though left his neutral rating intact, a rating he has had since April 2019 when Tesla stock was trading at $275 a share.

The stock closed Friday at $1,650.71.

Robust Model 3 demand out of China “… remains a linchpin of success and appears to be on a run rate to hit 150k 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," Ives said in a note to clients.

Tesla shares have more than tripled year to date, despite the impacts of Covid-19 on its factory operations and on global consumer demand for luxury vehicles. The company last week announced a 5-for-1 stock split, prompting investors to push its share price even higher.

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For the second quarter, Tesla reported 90,650 vehicle deliveries, sales of $6.04 billion, and GAAP earnings per share of 50 cents, beating consensus estimates. Registrations in China, meanwhile, topped 50,000 in the first half of 2020.  

Tesla is also prepping to begin producing its Model Y crossover at its Shanghai plant after ramping up output of its longer-range Model 3.

For Ives, however, it’s about the company’s upcoming announcements - specifically "game changing" battery developments at its highly anticipated Battery Day, now slated for Sept. 22. 

Musk and Tesla are expected to reveal a so-called "million-mile" battery, bringing Tesla closer to their goal of mass-producing a long-range and long-life battery equal to if not greater than the efficiency and production cost of gasoline-powered vehicles.

Watch: Tesla Bull Case Presented by Rob Maurer of Tesla Daily