On April 5th, 2021, Wedbush technology analyst Daniel Ives upgraded Tesla’s (NASDAQ: TSLA) rating to “outperform” with a target price of $1,000 per share. He also stated that if it’s a bull market, the target price would be $1,300.
Since Tesla’s sales have surpassed the US government’s limit of 200,000 vehicles, the federal tax credit policy of $7,500 for purchasing a Tesla ended on December 31st, 2018. Now this number is $2,500. Among other automakers, only General Motors has reached the maximum subsidy limit of 200,000 vehicles sold per year.
According to Ives, the Biden administration will invest $200 billion over the next eight years to support the thriving electric vehicle industry. Analysts believe that the tax credit policy may be tied to consumers rather than automakers, so Tesla, General Motors, or other automakers that have reached or are about to reach the 200,000 vehicle sales limit can also restore or maintain their price advantage and expand the market. The amount of the subsidy under the new policy may even reach $10,000.
The Biden administration has also promised to help build 500,000 charging stations and provide financial support to the battery production supply chain. To give everyone an idea of how strong the Biden administration’s support for electric vehicle policies is, I found data on the inventory of gas stations in the United States. According to data from 24/7 Wall St., there are currently 111,000 gasoline stations in the United States.
Continuing the analysis of Tesla’s situation, the delivery volume in Q1 2021 reached 184,800 units, proving many Tesla naysayers wrong. Model 3/Y accounted for 182,780 of the delivered vehicles. According to Wedbush, Tesla’s strong performance in China and Europe could push this year’s delivery volume to 850,000.
This year, 3% of global car sales are electric vehicles, a figure that will reach 10% by 2025. The performance of companies such as NIO and XPeng in the EV market also makes this analyst optimistic about the global electric vehicle market.🔗Information source: Benzinga
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.