Tesla stock to hit $1,000 in bull case as global demand soars

Tesla Inc. shares could double from current levels as global electric vehicle demand ramps up over the next five years, according to one Wall Street analyst.

Global demand for electric vehicles could reach 10% of auto sales by 2025, up from its current 3%, wrote Wedbush Securities analyst Dan Ives.

He raised his price target to $560 a share and his bull-case scenario to $1,000 on the belief that Tesla could deliver 1 million vehicles by 2023 (possibly 2022).

Ticker	Security	Last	Change	Change %
TSLA	TESLA INC.	357.09	+11.93	+3.46%

“We believe this demand dynamic will disproportionately benefit the clear EV category leader Tesla over the next few years especially in the key China region which we believe could represent ~40% of its EV deliveries by 2022,” he wrote.

He says Tesla’s Shanghai Gigafactory, which opened in October 2019, will give the electric vehicle maker a “major competitive advantage” over domestic players BYD Auto Co., Nio, Xpeng and Li Auto Inc. which are also set to benefit from surging demand.

LAS VEGAS CASINO RECOVERY THREATENED BY NEW CALIFORNIA CORONAVIRUS LOCKDOWNS

European efforts to reduce carbon emissions and increased regulatory scrutiny will drive a wave of demand led by France, Germany, Italy and the U.K. Tesla is aiming for its Berlin Gigafactory to begin production in July.

Ives believes a Biden administration would potentially provide another boost for the EV space through tax credits and incentives.

S&P Dow Indices announced last week that Tesla shares will be added to the S&P 500 on Dec. 21 as part of the index’s rebalancing. The Palo Alto, Calif.-based electric-car maker, which will be one of the largest companies to join the S&P 500, recently delivered a fifth consecutive quarterly profit.

CLICK HERE TO READ MORE ON FOX BUSINESS

Shares have rallied 20% in the four trading days following the announcement and were up 485% this year.