Buckle your seatbelts and get ready for Tesla (NASDAQ:TSLA) to keep climbing! The electric car leader just hit another record today thanks to a huge analyst call. In fact, one analyst thinks there is a case for Tesla stock to soon hit $1,000.
So what is leading Tesla stock to new heights today? Well, Wedbush analyst Dan Ives updated his outlook on the EV company. Importantly, he boosted his base-case target from $500 to $560. With Tesla stock trading just over $520, that still implies tasty upside. However, investors are most interested in his changes to the bull-case target.
Why? Ives also gave his bull-case target a 25% boost — taking it from $800 to $1,000.
No wonder investors are excited. The Wedbush analyst has bought into the recent hype around the company, and thinks there is a clear path to success. Importantly, he cited recent news that Tesla stock will join the S&P 500 in December. His move also follows a recent record high last week, prompted by Morgan Stanley analyst Adam Jonas.
Many Catalysts Boost Tesla Stock
One of the biggest things for investors to understand about the news today is that electric car stocks are wildly popular right now. Seemingly each day, these equities hit new highs. With Tesla as the true industry disruptor and the leader of the pack, it makes sense that analysts continue to update their price targets and ratings on Tesla stock. This is especially true with estimates calling for major growth in consumer adoption of electric vehicles.
But there are also Tesla-specific catalysts at play here. Beyond the upcoming inclusion in the S&P 500, the company has made several vehicle and battery advancements in recent months. Additionally, it is continuing to ramp its international expansion plans. Ives actually cited this expansion, saying that growth in the China market is key. In fact, he said that China could represent as much as 40% of overall sales for the company by 2022. This comes as Tesla ramps up its Gigafactory 3 in Shanghai.
For investors, this means that it is important to carefully track expansion. As Tesla ramps up the Shanghai Gigafactory, it is also working on factories in Berlin and Texas to expand its footprint and boost capacity. Plus, these factories will eventually help it deliver on the Cybertruck and a low-cost electric vehicle.
With Tesla stock hitting yet a new record on Monday, the future looks bright.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.