Tesla’s stock rises after Wedbush’s Ives lift target to $500

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Shares of Tesla Inc. rose 1.7% in premarket trading Monday, after Wedbush analyst Dan Ives raised his price target ahead of the electric vehicle maker’s third-quarter earnings report due out later this week. Ives reiterated the neutral rating he’s had on the stock since April 2019, but boosted his price target to $500 from $475. “[W]e believe Tesla’s improved manufacturing efficiency and shining Giga 3 success in China will be on full display later this week and lead to another strong bottom-line performance which should beat the Street in our opinion,” Ives wrote in a note to clients. “In terms of overall unit demand heading into year-end we believe Tesla is on pace to impressively achieve in the area code of 500k units for the year, a line in the sand that was a pipe dream six months ago as Tesla (and other auto players) have navigated this unprecedented COVID backdrop.” Tesla is scheduled to report results after Wednesday’s closing bell, with the FactSet consensus for earnings of 55 cents a share and revenue of $8.38 billion. The stock, which has dropped 4.8% over the past two days, has run up 46.5% over the past three months, while the S&P 500 has gained 8.0%.
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