Tesla shares rise after analyst ups price target over upcoming “game changing” battery technology

Tesla stock is up over 7% today after investment firm Wedbush’s Dan Ives raised price target for the electric car company to $1,900 from $1,800.

Ives believes that Tesla will experience a strong demand in China in the near future. The analyst said in a report that Model 3 is Tesla’s most in-demand vehicle in the country, and appears to reach a run rate of 150,000 deliveries. Ives thinks that the demand for Model Y will also increase in the coming months.

Tesla facility in the Netherlands, Tilburg

Among the reasons for his bullish outlook on Tesla stock, Ives also cited Tesla’s upcoming battery technologies, which he thinks will be announced by Elon Musk and his associates on the Battery Day event slated to take place in September. The analyst thinks that these new technologies will be potentially “game changing” for the battery industry.

Ives, however, maintained his neutral rating for Tesla stock.

Recently, Morgan Stanley Asia also gave a strong outlook for Tesla, citing the Battery Day event. The firm believes that the notion of Tesla launching optimized software and battery packs for the auto industry is now gaining traction among the investors.

Tesla stock has tripled in value so far this year, defying all doubts and arguments posed by short sellers. The coronavirus pandemic hasn’t affected Tesla’s performance and results. In July, the company posted a quarterly profit for the fourth consecutive quarter. The company has promised an all-electric Tesla Semi, a million mile battery project, the famous Cybertruck and robotaxi-ready vehicles by the end of 2020.