Tesla’s stock price (TSLA) performed strongly on Monday, and its first-quarter delivery volume was much better than expected, but in the medium term, part of the stock’s real rise is attributable to the efforts of the Biden government to get people into power Industry automotive.
Dan Ives, a technical analyst at Wedbush, said that he raised his rating to “Outperform” on Monday with a target price of $1,000. Ives’ bull market target price of $1,300 reflects Biden’s ambitions for electric vehicles.
Ives told Yahoo Finance: “We learned from a contact on the ring road that a tax credit of $7,500 may be equivalent to a tax credit of $1
Currently, the tax credit for electric vehicles is $7,500. But after a car manufacturer sold 200,000 battery-powered cars, the product was eliminated. Tesla and General Motors have exceeded the threshold.
But as far as Ives is concerned, the Biden administration recently formulated a plan to spend nearly $200 billion in eight years to support the booming electric vehicle industry. There are rumors that the U.S. government intends to expand tax incentives for consumers, which may give a great boost to the sales of Tesla and its competitors.
The government also pledged to support the establishment of 500,000 charging stations and strengthen the battery production and supply chain.
Even without the help of Camp Biden, Tesla is still surging.
Tesla reported on Friday that deliveries in the first quarter were 184,000. Wall Street estimated it at 172,230. The intensity is seen in both model Y and model 3.
The continuing semiconductor shortage caused Ford and General Motors to stop producing pickup trucks, which made Tesla’s performance even more impressive. To be sure, Tesla’s high-tech cars use its share of chips.
Ives said: “Even though Tesla suffered a painful sell-off, [stock this year], I think this is just the beginning of a large-scale rebound of 30% to 40%. “
Brian Sozzi Is a general editor, Yahoo Finance Anchor. Follow Sozzi on Twitter @Brian Sozzi (BrianSozzi) carry on LinkedIn.
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