Tesla, Inc. (NASDAQ: TSLA) shares have been on a tear since May and they have risen in each of the past 10 sessions. As the stock overshoots the price target by sell-side firms, a Wedbush analyst became the first to react to its recent spike.
The Tesla Analyst: Dan Ives reiterated an Outperform rating and upped the price target for the stock from $215 to $300. The analyst also added Tesla back to Wedbush's best ideas list.
The Tesla Thesis: The sum-of-the-parts story for Tesla now further comes into play with its supercharger network, energy business, AI-driven autonomous path, battery ecosystem, and increased production scale/scope globally, Ives said. This adds to the "Tesla golden EV success story" that is still in the early days," he said.
The analyst said Tesla is likely seeing steady demand following the price cuts in the U.S. and China and margins were now in stabilization mode. He expects margins to bottom over the next one to two years.
"In a nutshell, Musk and Tesla are playing chess while other automakers are playing checkers in this broader EV green tidal wave," Ives said.
Delving into Tesla's collaboration with General Motors Corp. (NYSE: GM), the analyst said GM electric vehicle drivers now have access to 12,000 Tesla superchargers.
"At the end of the day, Tesla essentially owns the charging network ecosystem domestically and GM as well as Ford Motor Co. (NYSE: F) need access to it for success in their broader EV ambitions over the coming years."
For Tesla, this is a large monetization opportunity in its supercharger story, Ives said. The analyst said he expects Ford and GM combined could add another $3 billion to EV charging revenue for Tesla over the next few years in another accretive poker move by Musk and his company.
Overall, Tesla is likely to be on track to hits its 1.8 million unit delivery target for the year, the analyst said. He also sees the Nevada expansion as a strategic advantage for Tesla and the move to 4680 battery cell production as another "checkmate" win for Tesla in this EV arms race.
The launch of the Cybertruck later this year will also add to the Tesla growth story, the analyst said, adding that a few more new modes, including a sub-$30,000 EV, could be on the deck.
"In a nutshell, Tesla is in a massive position of strength," he added.
Tesla Price Action: In premarket trading on Friday, Tesla stock soared 4.16% to $244.63, according to Benzinga Pro data.