Tesla (TSLA) - Get Report kicked off the trading week in higher gear on Monday after Wedbush analyst Daniel Ives raised his price target ahead of the electric vehicle maker's third-quarter earnings due out later this week.
Ives reiterated his neutral rating on Tesla’s stock, which he has had in place since April 2019, but boosted his one-year price target to $500 from $475 ahead of Tesla’s third-quarter report, which is expected to show earnings of 55 cents a share on sales of $8.28 billion. Tesla will release earnings after the closing bell on Wednesday.
“Tesla's improved manufacturing efficiency and shining Giga 3 success in China will be on full display later this week and lead to another strong bottom-line performance which should beat the Street in our opinion," Ives wrote in a note to clients.
"In terms of overall unit demand heading into year-end we believe Tesla is on pace to impressively achieve in the area code of 500k units for the year, a line in the sand that was a pipe dream six months ago as Tesla (and other auto players) have navigated this unprecedented COVID backdrop," Ives said.
Tesla earlier this month said it delivered a record 139,300 vehicles in the third quarter, topping analysts’ expectations of 136,000. More than 124,000 of those vehicle deliveries consisted of the Model 3 and Model Y.
That followed the company's recent Battery Day event, in which Tesla CEO Elon Musk laid out long-term plans to produce a lower-cost battery, build a $25,000 electric car and eventually produce 20 million vehicles a year.
Shares of Tesla were up 1.21% at $445 in trading on Monday. Tesla has gained nearly 50% in the past three months.