Tesla stock has room to prosper after its second stock split in two years, according to a Thursday note from Wedbush analyst Dan Ives.
Ives set a $360 price target for Tesla, representing potential upside of 21% from Wednesday’s close. Tesla initiated a 5-for-1 stock split in August 2020.
Ives’ continued confidence on Tesla stems from the firm’s ability to ramp up production at its Shanghai factory after COVID-19 lockdowns led to a disastrous second-quarter with deep production cuts.
As Tesla’s China factory recovers, it should lead to large volume gains heading into year-end, according to the note.
“We are now seeing unprecedented Model Y production in China after factory upgrades with Musk & Co. on a pace to produce over 1 million vehicles annually out of this key product artery,” Ives said.
That’s a big deal considering Tesla produced just under 1 million vehicles in 2021 from all of its factories.
“Demand is not the problem for Tesla, but supply has been and is now clearly on an upward trajectory with China on its next level of Model Y production while Berlin and Austin ramp its production lines into year-end,” Ives said.
