In a recent interview with Bloomberg, Wedbush Securities Managing Director Dan Ives said, “Tesla is a stock that will be four digits as we go into next year.”
The equity researcher went on to deem Tesla’s current share price a “buying opportunity”. Ives touched upon how Tesla’s increasing production capacity will enable the company to cater to the market’s demand for its electric vehicles (EVs) in full, leading to an equally exponential growth in share price.
“Tesla [doesn’t] have a demand issue,” said Ives. “They have a supply issue”, and Giga Berlin going online by the end of the year should help tap more of that demand.
Wedbush Securities upped its price target for Tesla from $950 USD to $1,000 USD back in April, following impressive Q1 delivery numbers from the EV maker. The investment firm has also pegged Tesla for ~900,000 deliveries this year.
The EV industry is starting to bloom, and the world is heading into the throes of a “green tidal wave”. EVs only account for 2% of all vehicles in the U.S., and 3% of all vehicles worldwide, but Wedbush expects that number to go all the way up to 40-50% in the next decade.
While all of the carmakers transitioning into the EV space will benefit from the world’s adoption of sustainable transportation, Ives says Tesla will be a “disproportionate benefactor”, majorly due to its battery technology, its vast and rapidly growing Supercharging network, and “the DNA that Musk has instilled within Tesla.”
Where legacy carmakers like General Motors, Ford, and Volkswagen are struggling in the middle of a global chip shortage, Tesla is continuing to grow in spectacular fashion. Tesla delivered a whopping 241,300 vehicles during Q3, which analysts are crowning Tesla’s “strongest quarter ever”.
Tesla will be presenting its third-quarter financial results on October 20.
