Tesla shares could rise 35% as recent price cuts have already been a huge success in China, says Wedbush’s Dan Ives.

  • Tesla could rise 35% this year as its recent price cuts have already been successful in China, Wedbush’s Dan Ives said.
  • In a Wedbush survey, 70% of consumers in China said they were positively impacted by the recent price cuts when buying a Tesla.
  • This could lead to a recovery in the electric car maker, whose shares have fallen 65% in 2022.

Tesla shares could rise 35% this year, according to Wedbush’s Dan Ives, as recent price cuts have already been a huge success in China.

Wedbush polled more than 500 consumers in China who were looking to buy an electric car this year and found that 76% of those surveyed said they were considering buying a Tesla, ahead of local competitors such as BYD (58.6%) and Nio (48.5). %). .

In addition, nearly 70% of those surveyed said they were positively impacted by the recent price cuts to buy Tesla.

Tesla has cut prices twice in China as the electric car maker continues to face sluggish demand and sluggish sales. The Wedbush survey came shortly after the prices of Tesla Model 3 and Model Y SUVs in Europe and the US were cut, which could increase sales by 53%, according to Bank of America.

“The recent Tesla price cut [are a] “A huge success story so far,” Ives said in a note Thursday. “China represents the core of Tesla’s global growth story, and it appears that the price cuts have been very well received by EV consumers and have thus accelerated purchasing decisions.”

He reaffirmed his 12-month Tesla share price target of $175, which suggests a 35% increase from current levels.

Ives said in a separate note last week that Tesla’s price cuts were a sign that the company is becoming more aggressive as competition in electric vehicles intensifies.

“We believe that together these price cuts could drive demand/supply by 12-15% globally in 2023 and show that Tesla and Musk are on the offensive to stimulate demand amid easing,” he wrote. . “It is a clear blow to European automakers and US stalwarts (GM and Ford) that Tesla is not going to do well in the sandbox as there is now a price war on electric vehicles.”

Shares are up 17% year-to-date after falling 65% in 2022 and losing an $800 billion market valuation.

These losses were caused by headwinds from rising inflation, a strong US dollar, and Elon Musk’s chaotic takeover of Twitter, which hurt the Tesla brand, analysts said.

Content Source

News Press Ohio – Latest News:
Columbus Local News || Cleveland Local News || Ohio State News || National News || Money and Economy News || Entertainment News || Tech News || Environment News

Related Articles

Back to top button