Tesla Must Beat Expectations After $1 Trillion Valuation, Analysts Say

Tesla recently surpassed a trillion-dollar valuation mark. According to TheStreet, analysts at Wedbush believe there are now two things the company must do in order to meet their most bullish scenario. 

Analysts at Wedbush currently have an outperform rating and $1,100 price target for Tesla. 

At last check, Tesla shares were 0.9% higher and around $1,034. On Tuesday, the company traded up as much as 6.8% and is now near $1,095.

Meeting this scenario would mean reaching Wedbush’s bull case price target for Tesla of $1,500. 

To do so, Wedbush analysts Dan Ives and John Katsingris say Tesla must resolve its current problem of demand outweighing supply by increasing production, specifically through new Gigafactory openings in Austin and Berlin which will allow for more production globally. 

Additionally, Tesla must see continued success in China in order to justify the company’s increased valuation, as Wedbush estimates that China is currently worth $300 per share for Tesla’s valuation. 

“China demand rebounded in [the third quarter] with massive momentum so far in the month of October (along with Europe) and is a clear indicator of the step up in EV demand taking place globally with China leading the way,” Ives said. 

For more New York City Technology news and culture, follow us on Instagram and Twitter @NYCWired.