The Chinese market is a standout for Tesla Inc. providing the electric-vehicle maker with “good mojo into 2024,” according to Wedbush analyst Dan Ives.
“With the last week of December now here we believe Tesla is tracking slightly ahead of the 480k delivery unit bogey for 4Q based on strong data out of the key China region that gives us incremental confidence in our bullish call into 2024,” wrote Ives, a longtime Tesla bull, in a note to clients. “We have seen some clear price stabilization globally with Tesla prices upticking in a number of regions including China over the past month which should be music to the ears of Tesla bulls after a 2023 that had some clear twists and turns.”
Tesla’s stock
TSLA,
rose 0.6% toward an 11-week high in premarket trading Wednesday. It has rocketed 108.3% year to date through Tuesday, while the S&P 500 index
SPX
has advanced 24.4%.
In a note last week, Ives reiterated the outperform rating he’s had on the stock for years, and raised his 12-month price target to $350 from $310, saying Tesla had navigated the “Category 5 storm in China well.”
Related: Tesla’s stock can rise to $1 trillion market value in 2024, analyst says
The company’s stock fell earlier this year following data showing that growth in automobile sales in China slowed sharply. Tesla also faces stiff competition from Chinese EV makers, forcing the company to cut prices for some of its models in China.
Additionally, 2023 was marked by geopolitical tensions between the U.S. and China. In May Musk made his first visit to China in about three years, where he was welcomed by top Chinese officials.
Related: Tesla cuts prices for some Model Y versions in China, as price war ramps back up
Late Tuesday Bloomberg reported that Tesla is planning to launch a revamped Model Y from the company’s Shanghai plant in 2024. Tesla has not yet responded to a request for comment from MarketWatch.
Of 49 analysts surveyed by FactSet, 21 have an overweight or buy rating, 21 have a hold rating, and seven have an underweight or sell rating for Tesla.
Related: Tesla reportedly will build revamped Model Y in Shanghai in 2024
Tomi Kilgore contributed.
