Tesla could rally to $1,000 this year as demand from China remains strong and the global chip shortage subsides, Wedbush says !!
Wedbush's Dan Ives reiterated his $1,000 target for Tesla on Monday as the stock slipped below $653.
The analyst sees robust demand in China driving the electric vehicle maker higher.
Ives also said the global semiconductor chip shortage will only be a temporary setback.
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Tesla could roar higher in 2021 as demand looks strong so far and if the global semiconductor-chip shortage is only a temporary setback for the EV giant.
That's according to Wedbush's Dan Ives, who has an "outperform" rating for the stock and price target of $1,000, a nearly 49% jump from current levels.
In a Monday note, the senior technology analyst pointed to three "perceived headwinds" that Tesla is facing right now: the chip shortage, political blowback in China from recent safety issues, and rising electric-vehicle competition around the globe.
As Elon Musk appeared on "Saturday Night Live," Lucid Motors, Ford, and Volkswagen all showcased their flagship eclectic vehicles in separate advertisements during the broadcast. But Ives said Tesla remains the leader in the market, and underlying consumer demand looks robust in China and Europe.
"The main line in the sand now for the bulls and bears is not the near-term chip shortage in our opinion (which is temporary), but rather Tesla's ability to further penetrate China," Ives said. "Now it's about Musk playing nice in the sandbox which appears to be happening over the last few weeks around safety issues and making sure that Tesla does not see any stumbles/government crackdown in China which is poised to represent 40%+ of global deliveries by 2022."
The analyst estimated that Tesla appears to be able to comfortably exceed 200,000 delivery units in the second quarter, even factoring in the chip shortage. For the next few months, Ives is keeping an eye on Tesla's Model Y production and demand, the Model S and X makeovers, and Tesla's higher margin software and full self-driving purchases.
Ives said he is still bullish on the EV sector despite the risk-off selling the industry has faced over the past few months. Shares of Tesla slipped 3% Monday morning to $651.59, and the EV giant is down over 5% year-to-date. Meanwhile competitors Fisker and Nikola are both down more than 23% in the same time period, and Lordstown Motors has tumbled 60% in 2021 amid short-seller reports.
