On Monday, Wedbush Securities analyst Dan Ives increased his bull case Tesla price target by 40%, to $3,500 per share. However, he reiterated his Neutral rating and $1,900 price target. So, given this, is Ives' bull case prediction credible? TheStreet founder Jim Cramer puts the question to Tesla Daily Maven and expert Rob Maurer.
"First, what's the credibility of Daniel Ives, given he has a bull case and he's Neutral and second, does he have any sort of insight that others don't," asked Cramer.
"In terms of his note this morning, and especially his comments on China, that's definitely accurate -- China is hitting a production run rate of 150,000 units right now, and that's actually a bit understated. Over the past couple of months, Tesla has registered about 26,500 vehicles in China. So if we extrapolate that to an annual run rate, that's about 160,000," said Maurer.
Here's an excerpt from Ives' note on China: "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.