While the US indexes set new records this week, Tesla Inc (NASDAQ:TSLA) posted a decline and it started recovering post-market closure.
However, the stock managed to close above the key $2,000 threshold gained for the second time last week, and the underlying trend remains bullish.
This is the opinion of Wedbush’s analyst team led by Dan Ives, who raised his target for Tesla to $3,500 in a note released Sunday.
“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 as well,” Ives wrote in a note.
“With the potential for growth in China, Tesla could now have an earnings capacity of more than $35 per share by 2025/2026, compared to our previous estimate of $20-25. So we are now increasing our price target to $3,500 from $2,500 to reflect this momentum,” Ives added.
Bullish on Tesla Stock
At last night’s closing price of $2024, this represents an upside potential of more than 73%.
It should be recalled that the latest wave of Tesla’s share price rise was triggered by the announcement of a 5-for-1 stock split to make it easier for retail investors (who have largely fueled this year’s 390% rise in the stock, according to experts) to access the stock.