Shares of Tesla Inc.
Friday was up 2.2% in premarket trading, rebounding after a 5.9% drop in the past two days, after Wedbush analyst Dan Ives raised his price target above current levels, citing signs of “robust and stronger than expected” demand in China. Ives raised its price target to $ 475, which is 1
2.2% above Thursday’s closing price of $ 423.43, from $ 380, reaffirming the neutral rating it had on the stock since April 2019. “The pent-up demand in the Chinese electric vehicle market for 3 models and recent price cuts are catalyzing strong unit deliveries for Musk & Co. in this key market with higher market share than domestic competitors as the success story of Giga 3 continues to unfold, “Ives wrote in a note to customers. He said that because Model 3s sold in China have incrementally higher margins than those sold in the US and Europe, he believes that strength in China could boost Tesla’s profitability profile in the coming years. And for the long-awaited Battery Day scheduled for September 22, Ives said CEO Elon Musk will announce a number of potential “revolutionary” battery developments. The stock selloff over the past two days triggered a 5-day winning streak in which the stock climbed 36.2%, which in turn came after a five-day bear market selloff in which the stock rose. dropped by 33.7%. So far it has grown more than five times (406.1%), while the S&P 500
it gained 3.9%.