Analyst: Tesla has removed a ‘major overhang’ on its stock

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Tesla Inc (NASDAQ: TSLA) secured approval from German authorities to start commercial production at its Brandenburg Gigafactory, which means a “major overhang” has been removed from the stock, says Wedbush Securities’ senior analyst.

Ives reiterates his $1,400 price target on Tesla

Dan Ives rates Tesla at “buy” with a price target of $1,400 that translates to a 70% upside from here. In a note to investors on Sunday, he wrote:

We can’t stress the importance of Giga Berlin to the overall success of Tesla’s footprint in Europe and globally, as the current Rubik’s Cube logistics of producing cars in China at Giga Shanghai and delivering to customers throughout Europe wasn’t a sustainable trend.

Tesla Inc could double its run-rate this year

Eventually, Tesla wants to produce up to 500,000 vehicles at its Berlin factory on an annual basis. According to Ives, the focus will be at producing the Model Y at the flagship European factory over the next twelve to eighteen months.

The annual run-rate of Tesla stood at 1 million units last year and the Wedbush Securities’ managing director expects it to double in 2022.

Last month, Morgan Stanley’s Adam Jonas said he expected Tesla Inc’s revenue to beat legacy rivals Ford Motor and General Motors combined revenue. The stock trades at a PE multiple of 169 at present.

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