The electrical vehicles maker, that has been under pressure due to CEO Elon Musk’s stock sales, has a new $1,400 price target from Wedbush Securities, which is a fresh Street high among Bloomberg-tracked analysts. According to Wedbush, Tesla may win half of the $5 trillion electric vehicle market.
“The Street is continuing to digest the massive transformation coming to the auto industry around the electric-vehicle revolution,” analyst Dan Ives wrote in a note Thursday, raising his target from $1,100 and reiterating an outperform rating.” Over next decade, green tidal wave will create a $5 trillion market potential, with Tesla leading.
According to Ives, Tesla should gain from both President Joe Biden’s $550 billion infrastructure program, which is expected to strengthen the country’s electric vehicle industry and also improving the demand in China.
Wedbush Securities raised its price estimate for Tesla to $1,400, which is a new Street high among experts tracked by Bloomberg. Even the latest decline in Tesla Inc. stock hasn’t deterred the company’s most optimistic analysts.
The industry is heating up, with Apple Inc. reportedly attempting to speed up the creation of its own electric vehicle. In a separate note, Wedbush analyst Ives stated that Apple may form a partnership to develop its cars next year, with Tesla being a possible candidate.
The stock was barely changed in premarket trade in the United States at $1,093.96, down roughly 11% from its November high.