Tesla stock rebounds after Wedbush analyst revived price target, but maintains rating at neutrality

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Shares of Tesla Inc. TSLA,
-4,14%
rose 2.2% in pre-market trading on Friday, rebounding from a 5.9% decline in the past two days, after Wedbush analyst Dan Ives raised his price target above levels current, citing signs of “robust and stronger than expected” demand in China. Ives raised his price target to $ 475, 12.2% above Thursday’s closing price of $ 423.43, from $ 380, while reiterating the neutral rating he had on the stock since April. 2019. “The pent-up demand in the Chinese electric vehicle market for the 3-model and recent price cuts are catalyzing strong unit deliveries for Musk & Co. in this key market with increased market share over domestic competitors as the success of the Giga 3 continues to unfold, ”Ives wrote in a note to customers. He said that as the Model 3s sold in China have increasingly higher margins compared to those sold in the United States and Europe, he believes the strength of China could increase Tesla’s profitability profile over the course of time. the next few years. And for the highly anticipated Battery Day slated for September 22, Ives said CEO Elon Musk will announce a number of potential “game-changing” battery developments. The stock’s sell-off in the past two days broke a 5-day winning streak in which the stock rose 36.2%, which in turn came after a five-day bearish sell-off. during which the stock fell 33.7%. To date, it has increased fivefold (406.1%), while the S&P 500 SPX,
-0,84%
gained 3.9%.

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