Tesla Climbs 6% In Pre-Market, Boosted By ‘Accelerating’ China Projects
Tesla Inc (TSLA) has met with officials from a district in the city of Chongqing in southwestern China to discuss “accelerating projects”, the Liangjiang New Area said on Tuesday, as reported by Reuters.
According to the report, officials held meetings with Tesla Vice-president Tao Lin, whose visit was reportedly welcomed by government official Duan Chenggang to “promote cooperation.”
Reuters also reports unidentified sources cited by the China Securities Journal stating that cooperation could refer to sales and maintenance centers rather than factories. Last year Tesla opened its first plant outside the US in Shanghai.
Shares in Tesla are climbing 6% in Tuesday’s pre-market trading, with the electric vehicle maker now up a whopping 265% year-to-date. The rally has continued unabated following strong second-quarter car deliveries, which exceeded analysts’ expectations. It delivered about 90,650 vehicles during the quarter, easily beating the estimated 74,130 figure.
Piper Sandler analyst Alexander Potter has just boosted his price target on Tesla to $2,322 from $939 while reiterating his buy rating. According to Potter, Tesla is the “most consequential company in the mobility ecosystem, and this is unlikely to change in the next decade.” He recommends investors hold on to shares, noting the company’s significant software opportunity and faster-than-expected share gains.
Looking ahead, five-star analyst Daniel Ives at Wedbush says that although investors will be focusing next on 2Q earnings on July 22, he continues to believe that Battery Day now to be held on Sept. 22 will be a major positive catalyst for the stock.
“First on earnings around the corner, based on the 90k delivery number that Musk & Co. announced a few weeks ago it appears profitability is likely on the horizon and will be another major feat for Tesla in this very arduous COVID-19 backdrop,” Ives told investors.
However, the analyst maintained a Hold rating on the stock with a $1,250 price target. Like Ives the majority of Wall Street analysts are sidelined on the stock with a Hold analyst consensus. In light of the share’s rally this year, the $905 average analyst price target now implies 39% downside potential to current levels. (See Tesla’s stock analysis on TipRanks).
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