Tesla Price Target Raised at Wedbush Based on 'Massive' EV Transformation

·1 min read

By Sam Boughedda

Investing.com — Tesla Inc's (NASDAQ:TSLA) shares rose 1.6% on Friday after Wedbush analyst Daniel Ives raised his price target, saying the Street continues to digest the "massive" EV transformation taking place in the auto industry.

Ives raised Tesla's price target to $1,400 from $1,100, around $294 above its share price at the time of writing.

EV stocks have been rallying recently, with both Rivian and Lucid climbing over 10% on Friday. Ives sees several stocks taking advantage of the rapid EV transformation, including General Motors (NYSE:GM), Ford Motor Company (NYSE:F), Volkswagen (DE:VOWG_p), Lucid Group Inc (NASDAQ:LCID), Rivian Automotive Inc (NASDAQ:RIVN), and Fisker Inc (NYSE:FSR).

“We also believe the Biden Infrastructure signing kicks off the first phase of EV infrastructure (charging stations, tax credits) build-outs signaling a new era of adoption for electric vehicles in the US," the analyst explained.

Ives believes this is the "biggest transformation to the auto industry since the 1950s," with the potential for over 100 manufacturers to attack the $5 trillion market opportunity. He estimates Tesla could “own $2.5 trillion of this pie.”

“The EV stocks are reflecting future parabolic growth and margin potential over the coming years, with now the execution/capacity story taking hold into 2022."

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