China is a crucial hot spot for Tesla, accounting for 184,800 new cars delivered by the company in the first quarter of 2021. Wedbush analyst Dan Ives sees outperformance for the company this fiscal year.

U.S. electric vehicle and clean energy company Tesla Inc (NASDAQ: TSLA) has secured a bullish price rating from investment and asset management firm Wedbush Securities amid increasing competition in the securities industry. electric vehicles. According to In The Street, shares of the Palo Alto-based automaker cringe as chief executive Elon Musk reportedly rolls back plans to launch its luxury-car version Model S Plaid +.

Plans for the Plaid Plus originally slated to hit the market by mid-2022 have now been stalled as Elon Musk revealed in a tweet that the Plaid S variant of his premium cars is just good enough.

According to specs, the Tesla Model S Plaid was designed to go from 0 to 60 mph in just under 2 seconds. Additionally, the vehicle has a top speed of 200 miles per hour and an estimated range of 390 miles. The car has three engines installed, the Plaid powertrain produces 1,020 horsepower. On the other hand, the Model S Plaid has a higher power and a longer range. Elon Musk’s latest move indicates that he may have chosen the company’s potential Plaid Plus customers who will no longer get the vehicle if the plans are implemented.

Tesla’s stock price closed Monday’s session up 1.01% at $ 605.13, tending to investor fun over Elon’s plans. After hours, the stock was down 0.85%.

Tesla price assessment amid growing competition in China

China, the world’s largest auto market, is a crucial hot spot for Tesla, accounting for 184,800 new cars delivered by the company in the first quarter of 2021. Wedbush analyst Dan Ives sees the company outperforming this fiscal year .

“We believe that this year, Tesla with a solid 2H can make nearly 900,000 annual deliveries and head towards 1.3 million in 2022 with the Cybertruck adding to the history of overall EV demand,” Ives said in a statement. customer note. In short, competition is intensifying from all angles in this electric vehicle arms race that has dominated Tesla and the industry as a whole. Tesla is leading the charge.

Reports indicate, however, that Tesla’s sales in China are down following the ban on the company’s cars attributed to data espionage issues. And this, despite the firm’s efforts to establish itself in the country through the creation of data centers dedicated to the storage of information collected from the cars of its passengers. The move has yet to allay Beijing’s fears with Tesla, a scenario that currently appears to be straining the company’s sales.

While other automakers are targeting the electric vehicle market including Nio Inc (NYSE: NIO) and Geely Automobile Holdings Ltd (HKG: 0175), among others, Tesla is getting its money’s worth, Ives maintains a price rating of $ 1,000 for the action of the American automaker.

“The main line in the sand now for bulls and bears is not the short-term shortage of chips in our opinion (which is temporary), but rather Tesla’s ability to penetrate China further,” Ives said. . “With China being a pillar of Tesla’s global success and its Giga footprint a key advantage, the latest round trips between Beijing and Tesla have clearly had a negative impact on Tesla’s demand in China for the time being. “

According to Ives, Tesla and its leader Elon Musk will benefit from no longer causing turmoil with Chinese authorities, a key factor in capturing the more than 40% market share the Asian giant will represent by 2022.

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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-world applications of blockchain technology and innovations to foster general acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media and sites. Benjamin Godfrey is a lover of sport and agriculture.

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