Wedbush Says Tesla Has 'Game Changing' Developments, Lifts Target To $1,000

Electric automaker Tesla Inc TSLA has several catalysts ahead that will help push the stock higher from current levels, according to Wedbush.

The Tesla Analyst: Daniel Ives maintains a Neutral rating on Tesla's stock with a price target lifted from $800 to $1,000.

The Tesla Thesis: Tesla's stronger-than-expected Model 3 demand in China is a "ray of shining light" for Tesla during a "dark global macro" environment, Ives wrote in a note. The company looks to be on track to deliver 100,000 Model 3 units in its first year and the Chinese growth story is worth at least $300 per share to Tesla's stock.

Back in the U.S., CEO Elon Musk has a few potential "game changing" announcements that will be discussed at the highly anticipated Battery Day. The analyst said continued innovation remains vital for Tesla's success and the company is approaching a 1-million mile battery that can last for decades and withstand all types of weather and terrain.

Tesla is likely also approaching a milestone of reducing battery production costs to a key $100/kWh threshold. This would give the company "much more financial flexibility" around pricing on current and future car releases.

Wedbush is sticking with a Neutral rating on the stock, but is lifting its bull case outlook from $1,350 to $1,500 per share.

TSLA Price Action: Shares of Tesla were trading higher by nearly 6% to $994.58 at the time of publication.

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