Wedbush Securities has announced its outlook for Tesla Inc. increased, after stronger than expected quarterly deliveries.
On Sunday, Wedbush raised its price target for Tesla TSLA,
up to $ 1,000 per share of $ 950, with a long-term price of $ 1,300 per share. Tesla shares closed at $ 661.75 on Thursday (markets were closed on Friday).
Wedbush analyst Daniel Ives also changed his rating from hold to outperform. “In our opinion, the 1Q delivery figures released Friday were a paradigm changer,” he said in a note.
On Friday, Tesla reported first-quarter deliveries, the proxy for sales, totaling 184,800 vehicles, past the FactSet consensus of 168,000. The Silicon Valley electric vehicle maker said it produced just over 180,000 vehicles over the period in what Ives called a “drop the mic” number.
“We now think Tesla could achieve more than 850,000 deliveries for the year with a target of 900,000, despite the shortage of chips and various supply chain issues in the automotive sector,” Ives said on Sunday. He added, “Dazzling delivery numbers coming from China cannot be ignored as the trajectory is on track, representing ~ 40% of deliveries for Musk & Co. by 2022.”
Ives and his team also see Tesla’s profitability improving significantly over the next three to four years.
Tesla shares are down 6.2% so far, but are up 628% in the last 12 months.