Wedbush analyst Dan Ives said in a report earlier this week that solid demand for Tesla’s Model 3 from Chinese consumers could help boost the stock. He dubbed the strength in China a “ray of shining light for Tesla in a dark global macro” environment.
Ives noted that demand for Tesla’s newer Model Y SUV is starting to ramp up in China, too. For these reasons, he thinks that China’s growth could add between $300 and $400 to its stock price.
There is a caveat though. Ives has an official price target on Tesla of just $1,250. His $2,000 call is a bull case. Everything has to go right for Elon Musk’s company.
Still, at a price of $2,000 a share, Tesla would have a market value of about $370 billion.
But many other Wall Street analysts are skeptical of Tesla.
The bear case for Tesla
According to data from Refinitiv, only nine of the 33 analysts who cover Tesla have a “buy” rating on it. Eleven have Tesla rated a “hold,” and the remaining thirteen are recommending that investors sell Tesla. The average price target for all Tesla analysts is just $710.47 a share.
And then there’s Elon Musk.
Some investors also are worried about a brain drain at Tesla. Several key executives have left in the past year and Tesla also does not have a chief operating officer to help Musk.