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Tesla (TSLA) could rally up to $1000 this year if China demand remains strong: report

(Credit: Tesla Greater China/Twitter)

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Wedbush analyst Dan Ives believes TSLA could soar back up to $1,000 in 2021 because demand in China remains strong. However, the global semiconductor-chip shortage could be a temporary setback for Tesla.

Ives has an “Outperform” rating for TSLA stock with a $1,000 price target. TSLA closed at $629.04 on Monday, down 6.44% compared to the last market close. The lowest TSLA stock reached this year was $563 in March, and the highest it went was $880.02 in January. 

Despite his optimistic price target for Tesla, Ives listed three headwinds the EV giant might face on its way to $1,000 per share. First, Tesla still has to contend with the global chip shortage, which has affected many automobile manufacturers and tech companies. Elon Musk openly discussed the setbacks Tesla experienced while ramping Plaid Model S and Model X production because of the global chip shortage. 

The second headwind Ives believes Tesla needs to overcome would be its perception in China. While he believes Tesla’s demand in the Asian country remains strong, Ives still cautions against political blowback in China related to safety issues.

“The mainline in the sand now for the bulls and bears is not the near-term chip shortage in our opinion (which is temporary), but rather Tesla’s ability to further penetrate China,” Ives said. “Now it’s about Musk playing nice in the sandbox, which appears to be happening over the last few weeks around safety issues and making sure that Tesla does not see any stumbles/government crackdown in China, which is poised to represent 40%+ of global deliveries by 2022.”

The last headwind that Ives believes will stand before Tesla on its rally to $1,000 would be the rising competition in the global battery electric vehicle market. Market Insider pointed out that Lucid Motors, Ford, and Volkswagen all showcased their flagship electric vehicle in separate advertisements broadcasted during Elon Musk’s appearance on Saturday Night Live.

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Ives estimated that Tesla could comfortably exceed 200,000 deliveries in the second quarter, even with the chip shortage. In the next few months, he will vigilantly watch Tesla’s Model Y production and demand, progress on the Plaid Model S and X, and the company’s higher-margin software along with Full Self-Driving purchases.

Disclosure: I am long TSLA.

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla bear turns bullish for two reasons as stock continues boost

“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.

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Credit: Tesla Manufacturing

A Tesla bear is changing his tune, turning bullish for two reasons as the company’s stock has continued to get a boost over the past month.

Dan Nathan, a notorious skeptic of Tesla shares, said he is changing his tune, at least in the short term, on the company’s stock because of “technicals and sentiment,” believing the company is on track for a strong Q3, but also an investment story that will slowly veer away from its automotive business.

“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.

He also said he believes a rally for the stock could continue as it heads into the end of the quarter, especially as the $7,500 electric vehicle tax credit is coming to an end at the end of the month.

With that being said, he believes the consensus for Q3 deliveries is “probably low,” as he believes Wall Street is likely underestimating what Tesla will bring to the table on October 1 or 2 when it reports numbers for the quarter.

Tesla shares are already up over five percent today, with gains exceeding nine percent over the past five trading days, and more than fourteen percent in the past month.

While some analysts are looking at the performance of other Mag 7 stocks, movement on rates from the Federal Reserve, and other broader market factors as reasoning for Tesla’s strong performance, it appears some movement could be related to the company’s recent developments instead.

Over the past week, Tesla has made some strides in its Robotaxi program, including a new license to test the platform in the State of Nevada, which we reported on.

Tesla lands regulatory green light for Robotaxi testing in new state

Additionally, the company is riding the tails of the end of the EV tax credit, as inventory, both new and used, is running extremely low, generally speaking. Many markets do not have any vehicles to purchase as of right now, making delivery by September 30 extremely difficult.

However, there has been some adjustments to the guidelines by the IRS, which can be read here:

Tesla set to win big after IRS adjusts EV tax credit rules

Tesla is trading at around $389 at 10:56 a.m. on the East Coast.

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Tesla lands regulatory green light for Robotaxi testing in new state

This will be the third state in total where Tesla is operating Robotaxi, following Austin and California.

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Credit: Tesla

Tesla has landed a regulatory green light to test its Robotaxi platform in a new state, less than three months after the ride-hailing service launched in Texas.

Tesla first launched its driverless Robotaxi suite in Austin, Texas, back on June 22. Initially offering rides to a small group of people, Tesla kept things limited, but this was not to be the mentality for very long.

It continued to expand the rider population, the service area, and the vehicle fleet in Austin.

The company also launched rides in the Bay Area, but it does use a person in the driver’s seat to maintain safety. In Austin, the “Safety Monitor” is present in the passenger’s seat during local rides, and in the driver’s seat for routes that involve highway driving.

Tesla is currently testing the Robotaxi platform in other states. We reported that it was testing in Tempe, Arizona, as validation vehicles are traveling around the city in preparation for Robotaxi.

Tesla looks to make a big splash with Robotaxi in a new market

Tesla is also hoping to launch in Florida and New York, as job postings have shown the company’s intention to operate there.

However, it appears it will launch in Nevada before those states, as the company submitted its application to obtain a Testing Registry certification on September 3. It was processed by the state’s Department of Motor Vehicles Office of Business Licensing on September 10.

It will then need to self-certify for operations, essentially meaning they will need to comply with various state requirements.

This will be the third state in total where Tesla is operating Robotaxi, following Austin and California.

CEO Elon Musk has stated that he believes Robotaxi will be available to at least half of the U.S. population by the end of the year. Geographically, Tesla will need to make incredible strides over the final four months of the year to achieve this.

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Tesla is improving this critical feature in older vehicles

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Credit: Tesla

Tesla is set to improve a critical feature that has not been present in older vehicles with a new update.

Tesla vehicles feature a comprehensive suite of driver assistance features, some of which aid in driving itself, while others support the vehicle’s surroundings.

One of those features is that of Driver Visualization, and with the rollout of a new update, owners of Intel-based Tesla vehicles are receiving an upgrade that will come with a simple software update.

Tesla plans to use Unreal Engine for driver visualization with crazy upgrade

The update will provide new visualizations while Intel-based vehicles are in reverse, a feature that was not previously available, but will be with Software Update 2025.32.2.

The improvement was spotted by Not a Tesla App via TheBeatYT_evil:

Previously, vehicles Tesla built were equipped with Intel-based processors, but newer cars feature the AMD chip, which is capable of rendering these visualizations as they happen. They were capable of visualizations when driving forward, but not in reverse, which is what this change resolves.

It is a good sign for those with Intel-based vehicles, as Tesla seems to be paying attention to what those cars are not capable of and improving them.

This was an undocumented improvement associated with this particular update, so you will not find any mention of it in the release notes that Tesla distributes with each update.

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