Biden's environmental plan supercharges Tesla, rivals

Tesla will continue to lead the pack of U.S. automakers as the incoming Biden administration provides a tailwind for the electric vehicle business, according to one Wall Street analyst.

President-elect Joe Biden is expected to dole out EV tax credits and provide other incentives to promote the shift away from traditional automobiles.

NYC TENANTS OWE $1.1B IN UNPAID RENT: SURVEY

“A Blue Senate is very bullish and a potential ‘game changer’ for Tesla and the overall EV sector in the US, with a more green-driven agenda now certainly in the cards over the next few years,” wrote Dan Ives, a New York-based analyst at Wedbush Securities. He raised his Tesla price target to $950 per share, up from $715, and said the stock could reach $1,250 in a bull-case scenario.

Ticker	Security	Last	Change	Change %
TSLA	TESLA INC.	320.72	+9.54	+3.07%

During his campaign, Biden said New York Rep. Alexandria Ocasio-Cortez’s Green New Deal, which calls for the U.S. to reach net-zero carbon emissions by 2050, is a “framework” for his environmental plans.

Aside from Tesla, General Motors Co., Rivian, Fisker Automotive and other EV makers and companies linked to their supply chains are also set to benefit as Biden focuses on reducing America’s carbon footprint.

Ticker	Security	Last	Change	Change %
GM	GENERAL MOTORS CO.	57.01	-0.62	-1.08%

General Motors CEO Mary Barra earlier this week, at the digital Consumer Electronics Show, reiterated the automaker’s electric vehicle ambitions, which includes 30 battery-powered models by 2025. In addition, the company launched a new business line called BrightDrop that will develop electric-delivery vehicles.

While competition is heating up from companies like General Motors, Tesla is still best in class, according to Ives.

Ives expects Tesla to exceed 1 million deliveries in 2022 and he said the company could reach 5 million deliveries annually by the end of the decade, so long as electric vehicle demand keeps growing at its current pace.

CLICK HERE TO READ MORE ON FOX BUSINESS

EVs, which account for 3% of global auto sales, could reach 5% this year and 10% by 2025. Overseas sales will also be a boost for Tesla, which already has a Shanghai Gigafactory and is working on a plant in Europe. Ives thinks China could account for more than 40% of Tesla’s delivery sales by 2022.

Tesla shares gained 743% in 2020, buoyed by the company’s long-awaited entry into the S&P 500 that came after its fifth consecutive quarterly profit. Shares have rallied another 20% this year through Thursday compared to the S&P 500’s 1.05% gain.