Tesla stock is poised to surge 22% as GM and Ford charging partnerships represent huge monetization opportunity, Wedbush says

© Aly Song/Reuters
Tesla Inc CEO Elon Musk dances onstage during a delivery event for Tesla China-made Model 3 cars in Shanghai Aly Song/Reuters

  • Tesla shares are headed to $300, and the company is looking at big revenue gains from recent deals with Ford and GM. 
  • Wedbush on Friday raised its price target and said charging deals could bring in $3 billion of revenue. 
  • “In a nutshell, Musk and Tesla are playing chess while other automakers are playing checkers,” Wedbush’s Dan Ives wrote. 

Tesla stock is set to surge 22% as recent deals with GM and Ford to open up its charging network bring into focus a “sum-of-the-parts” story for the EV maker that will drive its valuation higher in the coming years. 

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That’s according to Wedbush, which raised its 12-month price target for Tesla stock to $300 a share, from $215 a share. The firm’s Dan Ives wrote that Thursday’s announcement that Tesla would collaborate with GM to expand Tesla’s charger network was a big step forward for Elon Musk’s company. 

“[A]t the end of the day Tesla essentially owns the charging network ecosystem domestically and GM as well as Ford need access for success of its EV strategy and broader EV ambitions over the coming years,” Ives said in a note. 

Wedbush estimates that the GM deal, as well as a similar agreement with Ford that Tesla struck last month, could bring in an additional $3 billion of revenue in the coming year. 

“For Tesla, we believe this is a large monetization opportunity for the company in its supercharger story, adding to its growing sum-of-the-parts valuation,” Ives wrote.

He added that the move was also smart for GM, as it will help it achieve its objective to expand charging capabilities for its drivers by giving them access to 134,000 charging stations. 

The Wedbush analyst also predicted rising demand for Tesla vehicles with recent price cuts in the US and China. The note said that the EV maker is very likely to hits its delivery target of 1.8 million vehicles for the year, and growth will be boosted even further by the rollout of the Cybertruck and the awaited debut of a model priced under $30,000. 

“In a nutshell, Musk and Tesla are playing chess while other automakers are playing checkers,” Ives wrote. 

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