Update: Tesla could hit 500,000 deliveries in 2020 thanks to strength in China, delayed payment in Europe and the US: Wedbush

Tesla Corporation TSLA,
+ 0.35%
It could hit its target of 500,000 deliveries for 2020, a target Wall Street analysts dating back to late spring / early summer were not on the radar of, thanks to strength in China and a late surge in Europe and the US, Wedbush analyst Dan Ives wrote in a note Published Wednesday. Ives wrote: “Based on our preliminary analysis of demand and the global delivery path for Tesla in the fourth quarter, it appears Musk & Co will easily exceed street and internal expectations.” The analyst expects deliveries in the fourth quarter to approach 190,000 to 200,000 of the 180,000 he called “Line in the Sand.” Ives wrote: “As the end of the year and 2021 approaches, we are witnessing a major shift in the demand for electric vehicles globally with our expectations that electric vehicles rise from about 3% of total car sales today to 10% by 2025.” “We believe this demand dynamic will disproportionately benefit the leader in the electric vehicle category Tesla over the next few years especially in the mainland China region which we believe could account for around 40% of EV deliveries by 2022 given the current rapid pace of sales.” Ives expects “striking” demand from China in 2021 and 2022 across the board, and said Tesla’s flagship Giga 3 footprint is a major competitive advantage as domestic companies like BYD and Nio NilAnd the
Xpeng XPEV,
+ 9.31%
And Li Auto Inc. LI,
+ 6.15%And the
They also “shoot all cylinders”. He wrote: “If China stays on its current track for Tesla, Musk & Co could reach 1 million delivery units globally by 2022 (we are currently designing the timeframe for 2023).” He said an additional push could come in the form of increased electric vehicle credits under President-elect Joe Biden. Wedbush rated Tesla as neutral at $ 715 for 12 months and a bull case of $ 1,000. Tesla shares reversed early pre-market losses to gain 1.1%, and gained 696% in 2020, while the S&P 500 SPX,
-0.22%
Gained 15%.