Actions of Tesla (NASDAQ: TSLA) were up sharply on Monday. As of 10:30 a.m. EDT, the stock was up 5.5%.
The growth stock’s sharp rise is likely driven by an analyst’s decision to raise his 12-month price target for stocks to $ 1,900.
Tesla shares could reach $ 1,900 within 12 months, Wedbush analyst Daniel Ives said in a research note on Monday. This view is up from its previous 12-month price target of $ 1,800.
To support his more bullish outlook for action, Ives said he believes demand for electric vehicles in China has been picking up in recent months. Tesla, of course, is well positioned to take market share following the launch in late 2019 of a factory in Shanghai, where the company is producing a Model 3 made in China specifically for customers in China. The new Gigafactory is Tesla’s “backbone of success” in the market, according to Ives.
In addition, recent price cuts could help boost demand for Tesla vehicles in the United States and Europe, Ives believes.
Importantly, Ives says Tesla appears to be back on track with its goal of delivering 500,000 vehicles before the coronavirus for a full year, despite major detours earlier this year with plant closures due to the pandemic.
That total of 500,000 vehicles in 2020 would translate into 36% year-over-year growth.