Tesla got an upgrade.
Wedbush gave Tesla a price-target bump from analyst Dan Ives, who said the electric vehicle maker appears to be “turning the corner” in terms of both demand and production recovery following the coronavirus-induced global economic shutdown.
In a research note to clients, Ives said he was lifting his one-year price target on Tesla’s stock to $800, roughly a third higher than his previous target, though he held pat on the neutral rating he’s had on the company’s shares for more than a year.
"While 2Q delivery numbers remain in flux due to a host of logistical issues as well as overall lockdown conditions now starting to ease across the U.S. and Europe, it appears underlying demand for Model 3 in China is strong, with a solid May and June likely in the cards and clear momentum heading into 2H," Ives said.
This positive outlook came as the electric carmaker announced another North America-wide sticker-price cut for its lower-cost Model 3 sedan. Tesla revealed that prices for Model 3, its cheapest and most popular car, now start at $37,990 instead of $39,990.
Tesla also lopped $5,000 off the sticker price of its Model S Performance car, which now starts at $94,990. It did the same thing for the Model X, which starts at $80,000, but left the pricing of its newest Model Y offering unchanged.
Jim Cramer said that he's looking at the demand for German Teslas as a way to see what to expect from China's Tesla sales.