Will Tesla Shares Hit $300 On Charging News?

Tesla shares have nearly doubled year to date, rising about 45 percent in the last month alone. Although some may think the stock is cooling off after the streak, one analyst has pushed his 12-month price target even higher on recent news.

Above: Tesla Superchargers (Image: Casey Murphy / EVANNEX).

Last week, Wedbush Securities analyst Daniel Ives reiterated his Outperform rating on Tesla, increasing his 12-month price target to $300 from $225, according to Business Insider. Ives also added Tesla to his “Best Ideas List,” citing the automaker’s recently announced partnership with General Motors as a major win.

The partnership follows a similar partnership with Ford, in which both automakers' vehicles will gain access to Tesla Superchargers next year, along with adding the electric vehicle manufacturer’s charging port to their vehicles in 2025. Ives has emphasized the potential for Tesla to monetize both deals for future revenue streams.

“In a nutshell, Musk and Tesla are playing chess while other automakers are playing checkers in this broader EV green tidal wave,” Ives wrote in a note to clients on Friday. He also said the announcement added to the “Tesla golden EV success story” that is “still in the early days.”

Other significant factors to Ives bullishness include Tesla’s path to autonomy, the company’s battery ecosystem, and continued scaling of the automaker’s global scope. He also says Tesla is probably experiencing consistent demand following price cuts since the beginning of the year, adding that its margins are likely stabilizing following the reductions. In the next one or two years, Ives expects Tesla’s margins to bottom.

It’s unclear what the pricing structure for Ford and GM owners using Tesla Superchargers will be. However, it seems likely that Tesla will charge non-Tesla drivers a premium for using its Superchargers, driving added revenue from a larger pool of EV owners. Ives sees the combined revenue streams from GM and Ford drivers hitting around $3 billion in the next few years.

Tesla may also hit its delivery target of 1.8 million units this year, according to Ives. He also cites  the expansion of Gigafactory Nevada’s 4680 battery cell production, the delivery of the Cybertruck, and the upcoming addition of a mass-market, affordable EV platform as positive factors.

“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,” Ives added. “In a nutshell, Tesla is in a massive position of strength.”

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