Musk In China: Tesla Analyst Says 'Golden Goose Of EV Market' Key To Global Dominance

Zinger Key Points
  • Elon Musk's China visit comes at a key juncture when the price war is intensifying in the country, Daniel Ives says.
  • The analyst thinks building Tesla’s China footprint is important as it remains the “golden goose EV market."

Tesla, Inc. TSLA CEO Elon Musk's China visit is a big deal as the billionaire is visiting the country for the first time in about three years, said Wedbush analyst Daniel Ives.

What To Expect: Musk is likely to spend most of his visit around the key Giga Shanghai factory, Ives said in a note. He noted that the factory now produces over 80,000 units per month.

The production scale and scope in China, according to the analyst is one of Tesla's key advantages due to intensifying domestic competition from the likes of BYD Company Ltd BYDDY BYDDF, Nio, Inc. NIOP, Xpeng, Inc. XPEV and others

Tesla is also eyeing a new battery plant in Shanghai with a production capacity of 10,000 new Megapacks each year, the analyst noted. This will help the company expand its battery capacity globally along with its U.S. production, he said.

Ives expects Musk to meet with key Chinese officials in Beijing, including possibly Chinese Premier Li Qiang.

See Also: Everything You Need To Know About Tesla Stock

Why It's Important: Building Tesla's China footprint is important as it remains the "golden goose EV market," Ives said.

The visit comes at a key juncture when the price war is intensifying in the country. "Gaining market share against domestic competitors is right now front and center for the Tesla story," he said.

 "Playing nice in the sandbox in Beijing is something the Street is laser-focused on to make sure there are no disruptions to Tesla’s expansion and tentacles within China for the coming years as this remains the #1 EV market in the world," Ives said.

Ives rates Tesla an Outperform and has a $215 price target for the stock.

In premarket trading on Tuesday, Tesla shares rose 3.54% to $200, according to Benzinga Pro data.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next: Longtime User Says Goodbye To Tesla Model Y And Buys A Mercedes: ‘Just A Bunch Of Little [Quality] Issues That Piled Up’

Image generated using AI via Midjourney

date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorAsiaEquitiesNewsReiterationTop StoriesAnalyst RatingsAsiaChinaDaniel Iveselectric vehiclesElon MuskEVsmobilityWedbush
We simplify the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...