Demand for Teslas in China could help push the company over its 2020 goal of selling 500,000 vehicles, according to one analyst.
Many were skeptical that Tesla could achieve the goal it set for itself when it announced it was planning on shipping 500,000 vehicles in 2020. Undeterred, the company reiterated its goal during its third-quarter earnings call.
According to Business Insider, Wedbush Securities analyst Dan Ives believes China is the key to Tesla’s goal. In November, Tesla sold some 22,000 vehicles in China. If that demand continues in December, it should be enough to push the company past the 500,000 mark.
“We believe the company is tracking to another strong month of December in China which could be the tipping point to get Musk & Co. to hit/exceed its 500k annual delivery target, an achievement not even on the map for the Street going back to the late spring/summer timeframe,” Ives said.
Ives believes Teslas stock could increase as much as 56% to $1,000 a share, in part as a result of China’s demand.
“The China growth story is worth at least $100 per share in a bull case to Tesla as this EV penetration is set to ramp significantly over the next 12 to 18 months, along with major battery innovations coming out of Giga 3 and elsewhere throughout the China EV supply chain,” Ives added.