Wedbush analyst Daniel Ives just made the bull versus bear debate on Tesla (NASDAQ: TSLA) even more one-sided.
In an interview with TD Ameritrade Network, Ives said the electric vehicle (EV) maker is on its way to becoming a $2 trillion company.
“In a year or two from now, we are not just looking at one trillion [$ market cap] for Tesla, but in a couple of years this could be a company that could start to approach 1.5 trillion to 2 trillion.”
Ives also said that between Tesla and Shanghai-based EV Nio Inc (NIO), the former — seen by many as the most important innovator of the 21st century — had the lead in the Chinese market which is the world’s largest one. In fact, there were 1.2 million EVs sold in 2019 in China with the counry’s EV market share expected to jump by up to 14% by 2022, according to a recent McKinsey & Co. report.
“It speaks to what [Tesla CEO Elon Musk] has been able to accomplish — being the only U.S. manufacturer without a partner in China,” the analyst said, noting that the size of China’s EV market is big enough to accommodate firms like Xpeng Inc (XPEV), Nio, and others.
“It’s a big enough ocean for more than one boat,” the analyst added.
Ives, who repeated his $1,000 TSLA price target in the interview, also termed the combination of China’s strong EV demand with the production uplift from Tesla’s Gigafactory 3 as “the key to success” and a “lynchpin.”
It’s projected that EVs will reach global ubiquity within the next 15 to 20 years. According to ARK Invest’s Cathie Wood, Tesla is way ahead of everyone else when it comes to making the best EVs given the Elon Musk-led company is not only a car company but also a robotics, an energy storage and an artificial intelligence company.
As of writing, Tesla traded 2.74% lower at $846.70. Tesla’s share price has nearly doubled over the past three months, giving it a market valuation of $805 billion.