tesla (NASDAQ:TSLA) has had its fair share of problems in recent months, including signs of waning demand, as evident in disappointing fourth-quarter delivery numbers. However, based on a recent survey of Chinese EV consumers, it appears that the Tesla story may be returning to winning ways.
That’s the conclusion Wedbush analyst Daniel Ives reached after the investment firm set out to gauge sentiment among potential EV buyers in China. More than 500 consumers participated in the survey, of which 76% said they are “considering” buying a Tesla in 2023. Domestic rivals BYD and Nio ranked second and third, respectively.
One of the main questions surrounding Tesla right now is whether it can withstand growing local competition in China, but the results offer an indication of the strength of its brand and offerings.
“Tesla continues to be the car of choice among EV buyers based on our survey,” says the 5-star analyst. “The unique brand, Model 3/Y design and battery technology remain the top three reasons Chinese consumers are so positive about Tesla based on our research in mainland China. With China representing the “heart and lungs” of Tesla’s story, continued success in this key region is the lynchpin of Tesla’s bullish thesis in 2023 and beyond.”
Further bolstering the bullish case, respondents were also unequivocally positive regarding the recent Model Y price cuts announced earlier in the year. The “smart strategic poker move” has “positively influenced” the decision of 70% of respondents, making them more likely to buy a Tesla Y. This offers proof that the price cuts have been a “success.” home run from the start.” concludes the analyst.
All told, Ives rates TSLA shares an Outperform (ie Buy) to go along with a $175 price target. The implication for investors? ~22% upside potential from current levels. (To see Ives’ history, Click here)
If there is one certainty in the markets, it is that Tesla will always receive a lot of attention from analysts. Tesla’s stock has 28 recent analyst reviews on record, breaking down to 17 Buys, 8 Holds, and 3 Sells. The stock is selling for $143.75 and its $187.32 average price target implies ~30% upside from that level. (Watch Tesla Stock Forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
