UPDATE: Tesla may reach 500,000 in 2020 thanks to China’s strength, late push in Europe, US


Tesla Inc. TSLA,
+ 0.35%
Can achieve its target of 500,000 deliveries for 2020, a goal that was not on the radar of Wall Street analysts going back to late spring / early summer, strength in China and late push in Europe and the US Thank you for giving, Wesbush analyst Dan Years wrote in a note published on Wednesday. Ives wrote, “Based on our initial analysis of demand and the delivery trajectory globally for Tesla in 4Q, it appears that Musk & Co. will likely exceed Street and internal expectations.” Analysts are expecting delivery in the fourth quarter to come close to 190,000 to 200,000, compared to 180,000 in what he called the ‘line in the sand’. Ives wrote, “At the end of the year and in 2021, we are seeing a large share of EV demand worldwide with our expectations that EV vehicles have fallen to ~ 3% to 10% of total auto sales by 2025.” “We believe this demand will clearly benefit the dynamic EV category leader Tesla over the next few years, particularly in the major China region which we believe reflects the current rapid pace of sales of ~ 40% of EV deliveries by 2022 Might. ” Ives is expecting demand for “eye-popping” from the board from China in 2021 and 2022 and said that Tesla’s flagship Giga 3 footprint is a major competitive advantage for domestic companies like BYD, Nio nil.,
Xpeng XPEV,
+ 9.31%
& Lee Auto Inc Light,
+ 6.15%,
There are also “firing on all cylinders”. “If China stays on its current path to Tesla, Musk & Co. could hit one million delivery units globally by 2022 (we are currently modeling 2023 timeframes),” he wrote. An additional boost could come in the form of an increase in EV credits under the administration of President-elect Joe Biden, he said. Wesbush rated Tesla as neutral with a $ 715 12-month price target and a bull case of $ 1,000. Tesla shares reversed the initial premarket losses to gain 1.1%, and 696% in 2020, while the S&P 500 SPX,
+ 0.32%
There is an increase of 15%.

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