Wedbush analyst Dan Ives said in a report earlier this week that Tesla’s demand for Chinese consumers in Model 3 could help increase the stock. He called the Chinese power “the ray of light shining for Tesla in the dark spherical macro”.
Ives said that the demand for Tesla’s new Model Y SUV is also growing in China. For these reasons, he thinks that China’s growth may add $ 300 to $ 400 to the stock price.
There is a warning, though. The official price target of Ives at Tesla is only $ 1,250. The $ 2000 call for bull case. Everything should go well for Elon Musk’s company.
Nevertheless, Tesla’s market value would be about $ 370 billion at a share price of $ 2,000.
Many other Wall Street analysts, however, are skeptical of Tesla.
Bear case for Tesla
According to Refinitiv data, only nine out of 33 analysts covering Tesla have a “purchase” score. Eleven Tesla have a “hold” rating and the remaining thirteen investors recommend selling Tesla. The average price target for all Tesla analysts is only $ 710.47.
There is also Elon Musk.
Some investors are also concerned about brain drain at Tesla. Several key managers left last year and Tesla has no operations manager to help Musk.