Tesla’s stock (TSLA) has turned into a runaway beast, and what gets it back into the cage is a giant unknown right now.
Shares of the electric automaker have surged 183% year-to-date, with 80% of that eye-popping gain coming in the past three months, according to Yahoo Finance Premium data. The push higher comes amid optimism on Tesla’s future business in China but also the pace of recovery in the U.S. as production at the company’s Fremont, Calif. facility gets back up and running post COVID-19.
At this point, noted Tesla bull Dan Ives of Wedbush Securities, Tesla stands alone in the electric auto market. “It’s Tesla’s world, and everyone else is paying rent,” said Ives on Yahoo Finance’s The First Trade.
Tesla’s surprisingly solid delivery numbers out Thursday underscore the point.
The company said it delivered 90,650 cars in the second quarter, trouncing Wall Street estimates for 72,000. In the first quarter, Tesla delivered 88,496 cars. Importantly, Tesla pointed out it has successfully ramped production back up at Fremont to pre-COVID closure levels.
Tesla shares rose as much as 9% on the news.
Moments before the delivery numbers, Ives reiterated his $1,250 price target on Tesla’s stock —a Wall Street high. He has a bull case of $2,000 on Tesla, second to only Cathy Wood at Ark Investments in terms of super bullish outlooks for the company.
Ives said he was impressed by the delivery numbers and remains upbeat on Tesla’s long-term outlook.
“I think if you look at these delivery numbers, it speaks to what I believe is on the horizon. I think you’re looking at what’s going to be a million delivered vehicles in the next two to three years,” he said. “But the big piece is China. The China market in our opinion is worth $300 to $400 per share.”