Tesla (TSLA) - Get Report received a healthy price-target bump from Wedbush Securities analyst Dan Ives on Wednesday on the same day that it announced a price cut to several of its models, including the popular, cheap-and-chipper Model 3 sedan.
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 Tesla (and every other auto manufacturer) is navigating this unprecedented Covid-19 environment, the company took a major step forward around fulfilling demand and production concerns with the Fremont artery now up and running after the Musk vs. Alameda County stand-off got resolved," Ives said in his note.
Ives’ 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 the 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.
The price cuts come as Tesla looks to bounce back from one of the steepest and most dramatic economic downturns in modern history. Tesla also cut its prices in China on imported Model S models and Model X vehicles by 29,000 yuan, though it is leaving prices on its China-built Model 3 unchanged.
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