Skip to main content

Market Overview

Chinese Military Restrictions Show Tesla Caught In Middle Of US, China Relations: Wedbush

Share:
Chinese Military Restrictions Show Tesla Caught In Middle Of US, China Relations: Wedbush

Tesla, Inc. (NASDAQ: TSLA) is facing a setback in China, as the government has restricted certain state and military personnel from using the electric vehicle giant's vehicles, citing national security concerns.

The Tesla Analyst: Wedbush analyst Daniel Ives maintained a Neutral rating on Tesla with a $950 price target. 

The Tesla Takeaways: The ability of Tesla's sensors to record images of surrounding locations is consistent with the EV maker's footprint from a technological perspective, Ives said in a Friday note.

The location monitoring and surveillance with Tesla's vehicles, the analyst said, sent fears up the chain in the Chinese government and military due to the fact that it is a U.S. company.

Tesla finds itself in a unique position of being caught in the crossfire of tensions between the U.S. and China, he said. 

Related Link: Tesla Gets A Street High $1,200 Price Target: 'The Fireworks Aren't Over Yet'

This move is not a complete shocker, given Tesla's increasing market share within China and skyrocketing EV demand in this key region, Ives said, adding that it clearly indicates "big brother is watching" the situation closely. 

"Tesla's massive Giga footprint remains a major strategic advantage vs. other EV players (domestic and foreign) as we believe Tesla has potential to be on a 300k run rate of demand in China by the second half of this year." 

TSLA Price Action: At last check, Tesla shares were slipping 0.68% to $648.74. 

Related Link: Tesla Faces Yet Another NHTSA Probe Over 'Violent Crash' In Detroit

Latest Ratings for TSLA

DateFirmActionFromTo
May 2021Wells FargoInitiates Coverage OnEqual-Weight
Apr 2021Canaccord GenuityMaintainsBuy
Apr 2021Credit SuisseReiteratesNeutral

View More Analyst Ratings for TSLA
View the Latest Analyst Ratings

 

Related Articles (TSLA)

View Comments and Join the Discussion!

Posted-In: Daniel Ives electric vehicles WedbushAnalyst Color News Price Target Reiteration Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
GOTUCitigroupDowngrades12.0
ATERRoth CapitalMaintains25.0
FMTXSVB LeerinkMaintains54.0
TALCitigroupDowngrades
PLXSLoop CapitalMaintains105.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com