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Tesla Reaching $2T Valuation In 2 Years? Here's What Inspires Daniel Ives' Optimistic Target

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Tesla Reaching $2T Valuation In 2 Years? Here's What Inspires Daniel Ives' Optimistic Target

Tesla Inc (NASDAQ: TSLA) is on its way to becoming a $2 trillion company, Wedbush analyst Daniel Ives said on Tuesday.

What Happened: Ives told Oliver Renick of TD Ameritrade Network in an interview that the Elon Musk-led company was not an auto company but rather a disruptive technology company.

See Also: How To Buy Tesla Stock

“In a year or two from now, we’re not just looking at one trillion for Tesla, but in a couple of years this could be a company that could start to approach 1.5 trillion - 2 trillion [market valuation].”

Ives said that between Tesla and Nio Inc (NYSE: NIO), the former had the lead in the growing Chinese market.

“It speaks to what [Elon Musk] has been able to accomplish — being the only U.S. manufacturer without a partner in China.”

“It’s a big enough ocean for more than one boat,” the analyst said — referencing the size of China’s EV market which can accommodate firms like Xpeng Inc (NYSE: XPEV), Nio, and others.

Ives termed Tesla’s Gigafactory 3 factor as “the key to success” and a “lynchpin.” 

Why It Matters: The Wedbush analyst said that Tesla’s profitability is underestimated as it could sell up to 800,000 units this year.

The analyst also pointed to the incoming U.S. administration of Joe Biden as a “part of the optimism,” due to its “green agenda” and a complimentary “blue Senate.”

See Also:  Why 'SPAC King' Palihapaitiya Is Warning Against Selling Tesla Stock

The political developments in the U.S. are “bullish for EVs” and bullish for Tesla, General Motors Company (NYSE: GM), Fisker Inc (NYSE: FSR), and others, as per Ives.

The analyst repeated his $1,000 bull case price target for Tesla in the interview.

Price Action: Tesla shares closed nearly 4.7% higher at $849.44 on Tuesday and gained 0.3% in the after-hours session. 
Click here to check out Benzinga’s EV Hub for the latest electric vehicles news. 

Latest Ratings for TSLA

DateFirmActionFromTo
Jan 2021WedbushMaintainsNeutral
Jan 2021Edward JonesInitiates Coverage OnHold
Jan 2021Credit SuisseMaintainsNeutral

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