Tesla got a boost from 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.
Jim Cramer discussed why he doesn't see Tesla stock headed lower anytime soon and why investors are so devoted to the stock in the video above.