logologologologo
  • Home
  • Business
  • Markets
  • Exchange
  • Investment
  • Personal Finance

Tesla leading auto world’s ‘biggest transformation since the 1950s’: Wedbush’s Ives

Tesla strong rally this week points to more gains ahead, according to Wedbush, with the U.S. electric vehicle maker primed to transform the auto industry after ending 2021 on a strong note.

Better-than expected fourth quarter delivery figures spurred investors to remain bullish on Tesla’s stock, while the electric vehicle (EV) maker’s new Gigafactory in Austin, Texas preps for production this month.

“We’re seeing, it’s a $5 trillion market opportunity in terms of EV and it’s the biggest transformation to the auto industry since the 1950s,” Dan Ives, Wedbush’s senior equity analyst, told on Tuesday.

However, Tesla’s bull case going forward “continues to be expanding supply,” he added. “Based on all of our work in and around Austin, we think starting next week we’re going to get into the early stages of what I believe are cars rolling off the plant,” Ives said.

While there’s been no formal announcement of the Austin factory opening, all eyes are there on Berlin, opportunities some analysts view could expand capacity for the EV manufacturer. Wall Street is expecting an update on the company’s conference call later on this month.

“When you look at Austin in particular, it’s been very smooth in terms of the build out,” Ives said.

“Hiring has been very strong over the last few months, and that’s why Musk has made such a bet on Austin in terms of that being really the golden jewel of the ecosystem,” the analyst added.

Tesla walks a ‘tight rope’

Meanwhile, Tesla’s sales numbers for December in China showed another record month of deliveries. The data confirm that almost half of Tesla’s record year of production and deliveries came from GigaFactory Shanghai.

Tesla sold 70,847 China-made vehicles in December, the highest monthly rate since it started manufacturing in Shanghai in 2019, data from the china passanger Car Association (CPCA) showed on Tuesday. Only 245 units were exported to other markets.

The automaker, which has been able to surmount supply chain woes experienced by rivals to post record quarterly deliveries, has seen a changing tide in China after recent backlash over the company’s showroom in China’s Xinjiang– a region at the center of U.S. genocide allegations.

Like other analysts, Ives believes China remains a growth opportunity for Tesla, expecting China to be “over 40% of deliveries for Tesla in 2022.”

China’s EV market is dominated by domestic brands, including BYD and Wuling – a local marque that’s part of General Motors (GM). According to Shanghai-based consultancy Automobility, Tesla is only the foreign brand in the top 10.

“It’s a tight rope in terms of China,” Ives said. “But if you look at what’s happening right now, the China growth story is actually accelerating for Tesla 2022, and that we believe is worth about 500 hours per share of the story. It’s something we believe is underestimated by the Street.”

Wedbush maintains an “outperform” rating on the stock, with a $1,400 price target and bull price target of $1,800.

And while more competitors jump into the EV space, Ives argued it’s “not a zero sum game” for Tesla.

“Ford’s gonna be successful at GM, Lucid, VW in Europe and of course, NIO in China, but overall in EV land is Tesla’s world,” the analyst explained. “Everyone else is paying rent at this point and that’s what we’re seeing” in the near term, Ives added.

Related posts

February 8, 2023

OnePlus 11 review: A back-to-basics flagship phone


Read more

Categories

  • Business
  • Content
  • Exchange
  • Inflation
  • Investment
  • Markets
  • Personal Finance
  • Technology
  • Uncategorized

Archives

  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021

Recent Posts

  • OnePlus 11 review: A back-to-basics flagship phone
  • 4 Technologies That Aren’t That Big Today but Will Likely Be Massive in 20 Years
  • Google launches ChatGPT competitor in strike at Microsoft
  • Factbox-U.S. stock buybacks so far in 2023: big money, fewer companies
  • Spotify upgraded at Wells Fargo as company comes off ‘margin probation’

About Us

The Alpha Cut a Vida Street LLC Company
1404 N. Ronald Reagan Blvd.
Suite 1120
Longwood, FL 32750

Link

(843) 256-4375
https://thealphacut.com

Why Us

Terms & Privacy
Policy & Procedure
Disclaimer

This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only.
Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
All data in this communication is provided for informational purposes only and is not intended for trading or investing purposes. We expressly disclaim the accuracy, adequacy, or completeness of any data and content provided by financial exchanges, individual issuers, their respective affiliates and business partners and shall not be liable for any errors, omissions or other defects in, delays or interruptions in such data, or for any actions taken in reliance thereon. You agree not to copy, modify, reformat, download, store, reproduce, reprocess, transmit or redistribute any data or information found herein or use any such data or information in a commercial enterprise without obtaining our prior written consent.
We make no express or implied warranties or representations and shall have no liability whatsoever with respect to any data contained herein. The data may not be further redistributed or used to create indices or other financial products. This report and the views expressed herein are subject to change at any time based upon market or other conditions (such as domestic and global economic trends) and are current as of the date of publication hereof. The information, analysis, and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual or entity.
We emphasize that Investment in the securities of smaller companies can involve greater risk than is generally associated with investment in larger, more established companies, and can result in significant capital losses that may have a detrimental effect on the value of your investments.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.
Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth.As with any structuring of a portfolio of investments, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.
The information, analysis and opinions expressed herein are for general, impersonal information only and are not intended to provide specific advice or recommendations for any individual entity.

copyright © Alpha Cut 2021. All Right Reserved
The Alpha Cut a Vida Street LLC Company