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Cramer/Maurer: Wedbush $3,500 Bull Case, Growth in China, Tesla Battery Day

Analyst Dan Ives increases his bull case TSLA price target by 40%.
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Wedbush Securities analyst Dan Ives has increased his bull case price target on TSLA stock to $3,500 per share citing strong demand out of China and expectations for technological progress ahead of Tesla's upcoming Battery Day.

"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," wrote Ives.

According to Bloomberg, around 26,500 made-in-China Model 3 vehicles have been registered in the country over the last two months, an annualized rate of around 160,000 vehicles. In their first quarter earnings update in late April, Tesla said they expect to reach a production run rate from Giga Shanghai of ~200,000 vehicles per year mid-2020.

Ives also expects Tesla to unveil "a number of new potential 'game changing' battery developments" at Tesla's upcoming Battery Day next month. 

Are Ives' expectations for China deliveries and Battery Day reasonable? How does Ives' forecast compare to Tesla's targets? Jim Cramer joins Rob Maurer to discuss the action in the included video. Timestamps as follows:

  • 0:00 - Wedbush increases TSLA bull case price target to $3,500 per share on China upside, Battery Day expectations
  • 4:00 - Impact of planned obsolescence for Tesla and other automakers
  • 5:32 - Can Tesla justify its market share and continue growing?
  • 6:45 - Retail investor access to Tesla, and Tesla’s Battery Day
  • 8:27 - Tesla’s expansion and production capacity in China and worldwide

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Disclosure: Rob Maurer is long TSLA stock and derivatives.