Tesla Stock Price Target Hiked To Street High As House Eyes New EV Credits

Wedbush expert Daniel Ives raised his terms people for Tesla (TSLA) banal to $1,400 from $1,000 successful a enactment to clients precocious Thursday, arsenic the U.S. appears poised to ballot connected a reconciliation measure that includes EV credits for Tesla and different EV makers. Tesla banal closed higher connected Thursday, portion different EV stocks slumped.

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Wedbush's terms people is the highest connected Wall Street, on with the apical extremity of Jefferies' outlook. 

Ives says the linchpin to the wide bull thesis connected Tesla remains China. Wedbush estimates China volition correspond 40% of Tesla's deliveries successful 2022.

Ives added that Tesla is present "on a (roughly) 50k monthly run-rate for China into 2022."

Tesla sold 54,391 China-made vehicles successful October, including 40,666 for export, the China Passenger Car Association said. In September, Tesla sold 56,006 vehicles successful China, of which 3,853 were exported. Tesla typically exports the bulk of its accumulation successful the archetypal 2 months of the quarter.

Wedbush analysts estimation Tesla's income successful China is worthy $400 a stock for 2022. Ives maintained his Outperform standing connected Tesla stock. He precocious lifted his bull-case terms people to $1,800.

"The chip/component shortage remains a headwind for Tesla (and each different automaker), nevertheless we presumption this arsenic a transitory contented with our halfway absorption connected Model 3/Y demand, which is outstripping proviso by astir 15% arsenic of today," Ives said.

Tesla Stock

Shares edged up 0.7% to 1096.28 connected the stock marketplace today. Tesla banal is up 6% truthful acold this week, aft falling 15% past week aft CEO Elon Musk began selling 10% of his involvement successful the company.

TSLA banal is successful profit-taking zone, aft racing past a 900.50 cup-base buy point, according to MarketSmith illustration analysis.

Meanwhile, different EV stocks person slumped successful caller days. Lucid (LCID) fell 10.5% connected Thursday, adding to its 5.4% diminution the time before. Fisker (FSR) dropped 6.2%.

Recent IPO Rivian (RIVN) tumbled 15.5% to 123.38, aft falling 15% connected Wednesday, pursuing a five-day surge post-IPO.

Among different U.S.-based automakers with a increasing EV slate, General Motors (GM) fell 3.5% and Ford (F) was down 2%.

China-based rivals Nio (NIO) mislaid 3.2%, Xpeng (XPEV) was down 2% and Li Auto (LI) fell 3.7%.

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EV Credits

The House is slated to ballot connected a monolithic tax-and-spending reconciliation measure Thursday that would see expanded taxation credits, with Tesla and GM erstwhile again eligible.

The measure would assistance up to $7,500 successful taxation credits for buying EVs, but those credits would summation by $4,500 if a vehicle's last assembly occurs astatine a U.S. installation with unionized workers. That would lone use to GM, Ford and Chrysler, since their workers are unionized. It would exclude Tesla, Rivian, Lucid and each overseas automakers.

However, the Senate is apt to marque important changes to the reconciliation bill. That could see changes to the EV credits, including tougher caps connected income and terms tag limits arsenic good arsenic stripping retired the national bonus. Final transition could beryllium months away.

Follow Adelia Cellini Linecker connected Twitter @IBD_Adelia.

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