Deutsche Bank Suggests Tesla Will Benefit From China's Tax Decision
On Thursday, Deutsche Bank's Rod Lache released a note providing his take on the decision by the China State Council to waive purchase tax on electric vehicles, which includes imported "New Energy Vehicles" like Tesla's (NASDAQ: TSLA) Model S.
Lache says the purchase tax equates to 10 percent of the car's [Tesla Model S] price excluding the 17 percent value-added tax. Lache called this a "significant additional stimulus" to what has been an "exceedingly strong" demand for Tesla's Model S in China.
Looking ahead, Lache is expecting another "significant boost" to demand early in 2015 with the release of the Model X and is anticipating a "very significant" upgrade/update for the Model S in the next 12-24 months.
Lache currently rates Tesla stock with a Hold rating and $220 price target.
Latest Ratings for TSLA
|Jul 2015||Bank of America||Maintains||Underperform|
|Jun 2015||Credit Suisse||Maintains||Outperform|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.