Biden’s Electric Vehicle Goals Could Send This Stock to $1,300 Says Analyst

According to one analyst, Tesla’s share price may be ready to skyrocket to as high as $1,300 with the help of President Biden’s lofty electric vehicle goals.

Electric vehicle maker Tesla reported much better than expected first quarter delivery numbers recently.

Shares have been climbing higher but the pop could be more due to one analyst’s remarks and price target than the stellar delivery numbers.

On Monday Wedbush tech analyst Dan Ives has raised his rating on Tesla to Outperform with a $1,000 price target. The analyst’s bull case price target is $1,300, reflecting optimism on Biden’s EV ambitions.

“We are hearing from our contacts in the Beltway that $7,500 tax credit could potentially be $10,000 in terms of a credit and that’s going to be a massive catalyst not just for Tesla, but for the EV ecosystem in the U.S.,” Ives told Yahoo Finance Live.

The electric vehicle tax credit is $7,500 right now but is phased out after an automaker sells 200,000 battery-powered vehicles. Tesla and General Motors have surpassed the threshold already.

The Biden administration recently laid out plans to spend nearly $200 billion over eight years to support the surging EV industry and this could include an expansion on the tax incentive to consumers.

The Biden administration is also pledging support to build out 500,000 charging stations and bolster the battery production supply chain.

Tesla reported last Friday that first quarter deliveries came in at 184,000. Wall Street had estimated 172,230.

“Although there has been a painful sell-off for Tesla [stock this year], I think this is just the start of a massive rally of 30% to 40%,” said the Wedbush analyst.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.