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Tesla stock was rising Tuesday afternoon, a day before the electric-car makers fourth-quarter earnings report and in the face of concerns over the outbreak of coronavirus in China. <\/p>\n
Wedbush analyst Dan Ives wrote in a note Tuesday that the outbreak comes at a crucial time as the company ramps up its manufacturing plant in China. After the Lunar New Year, he doesnt see a major disruption for Tesla.<\/p>\n
In a worst-case scenario, he sees about 6,000 to 10,000 deliveries being pushed from the current quarter into the quarter ending in June. That wouldnt be a big difference for the Tesla bull thesis, according to Ives.<\/p>\n
We also note that Tesla has been notifying customers in China that all Tesla vehicles will have free supercharging to facilitate travel until the outbreak is resolved, a smart strategic move in our opinion, he wrote.<\/p>\n
China is becoming increasingly important to Teslas long-term growth. To tap into the growing Chinese EV market, and avoid import tariffs, Tesla began manufacturing cars at its new Shanghai Gigafactory 3 plant last month. <\/p>\n
Ives thinks the China opportunity is worth at least $100 a share, or $300 in his bullish scenario. He wrote that China, along with Model 3 demand and Europe, will be keys for Teslas growth.<\/p>\n
The stock has been soaring, rising as high as $594.50 at one point in Januarya 236% gain from its lowest point in early June. After slipping more recently, it was up 1.6% to $566.75 on Tuesday, while the S&P 500 index was up 1.3%.<\/p>\n
Ives maintained a Neutral rating with a $550 price target, calling 2020 a pivotal year for CEO Elon Musk, with Wednesdays earnings release likely a major step forward.<\/p>\n
Write to Connor Smith at connor.smith@barrons.com<\/a><\/p>\n <\/p>\n The rest is here: <\/p>\n Tesla Stock Is Rising Ahead of Earnings and Amid Coronavirus Concerns in China - Barron's<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Text size Tesla stock was rising Tuesday afternoon, a day before the electric-car makers fourth-quarter earnings report and in the face of concerns over the outbreak of coronavirus in China. Continue reading