How high can Tesla shares fly? Try $3,500, says this bullish analyst

A bullish start to the week is on tap, driven by hopes of de-escalating U.S.-China tensions and signals U.S. President Donald Trump will try to fast-track some coronavirus treatments.

Hopes are also building that markets will get supportive comments out of Federal Reserve Chairman Jerome Powell at the central bank’s Jackson Hole, Wyoming, gathering on Thursday.

Shares of Elon Musk’s company, in fact, busted past $2,000 a share last week. That brings us to our call of the day from one of Wall Street’s biggest Tesla’s biggest fans, who says his new best-case scenario for the stock is $3,500.

A team of Wedbush analysts led by Dan Ives say “pent-up demand in the China EV [electric vehicle] market for Model 3’s and recent price cuts are creating a ‘perfect storm of demand’ for Tesla.

“We believe that the China growth story is worth at least $400 per share in a bull case to Tesla as this EV penetration is set to ramp significantly over the next 12 to 18 months, along with major battery innovations coming out of Giga 3,” Ives told clients in a note dated Sunday. Giga 3 refers to Gigafactory 3, Tesla’s Shanghai factory.

Tesla’s most recent rally was sparked by the announcement of a 5-to-1 stock split, with shares up 390% year-to-date. Shares are up another 2.8% ahead of the open.

How high can Tesla shares fly? Try $3,500, says this bullish analyst, MarketWatch, Aug 24