Tesla Inc. (NASDAQ: TSLA) alone could seize half of the $ 5 trillion market opportunity for electric vehicles in the coming years and let more than 100 automakers fight for the rest of the pie, according to Wedbush Securities.
Tesla Analyst: Wedbush analyst Daniel Ives has maintained an Outperform rating and raised the price target to $ 1,400 per share from $ 1,100.
Tesla dissertation: Ives, who has been a Tesla bull for many years, said in a note that he expects it Elon Musk– led Tesla to take immense advantage of the continued and massive transformation that is coming as the entire automotive industry eventually becomes electric.
We believe there are $ 5 trillion of electric cars on the market and Tesla will likely own $ 2.5 trillion of this cake. We estimate that China is worth $ 400 per share for Tesla history for 2022 and raise our price target from $ 1,100 to $ 1,400 with our bull box $ 1,800.
– Daniel Ives (@DivesTech) November 19, 2021
Also see: Why Wedbush sees Tesla reporting ‘beat across the board’ with third-quarter earnings
Ives said Tesla is leading. The whole ecosystem is set to benefit, including obsolete faithful such as General Motors Co (NYSE: GM), Ford Motor Co (NYSE: F), Volkswagen Group (OTC: VWAGY) and EV-focused vendors such as Lucid Group Inc (NASDAQ: LCID), Rivian Automotive Inc (NASDAQ: RIVN), Fisker Inc (NYSE: FSR), the analyst said.
“In our opinion, based on the current trajectory, electric cars globally will represent 10% of the cars by 2025 and 30% by 2030,” he said.
Ives said China could represent 40% of Tesla’s deliveries next year, staging a comeback in the world’s largest car market, with Tesla heading “into the end of the year with a ~ 50,000 monthly run rate for China into 2022.”
Also see: GM has the potential to trade in multiples similar to Tesla, Wedbush says as it starts coverage with ‘Outperform’ assessment
“We estimate that China’s history is worth $ 400 per share for Tesla history for 2022.”
Ives On Legacy Rivals: Ives said traditional motorists like GM, Ford and VW should be revalued and the estimated GM could be a $ 100 stock by the end of 2022.
TSLA Price Action: Tesla shares rose 3.71% on Friday and closed at $ 1,137.