Stock

: Wedbush's Tesla stock upgraded to mirror the paradigm shifter supply numbers

Wedbush Securities has improved its outlook for Tesla Inc. after stronger than expected quarterly shipments.

Wedbush raised its price target for Tesla on Sunday
TSLA,
-0.93%,
from $ 950 to $ 1,000 per share for a long-term bull case price of $ 1,300 per share. Tesla shares closed at $ 661.75 on Thursday (markets closed on Friday).

Wedbush analyst Daniel Ives also changed his rating from hold to outperform. "In our opinion, the 1Q delivery numbers released on Friday were a paradigm shift," he said in a note.

On Friday, Tesla reported first-quarter deliveries, its proxy for sales of a total of 184,800 vehicles, beating the FactSet consensus of 168,000. The Silicon Valley electric vehicle maker said it produced just over 180,000 vehicles during the reporting period, which Ives referred to as a "drop the mic" number.

"We now believe that Tesla could exceed 850,000 shipments for the year with 900,000 as the stretch target, despite chip shortages and various supply chain problems that persist across the automotive sector," Ives said on Sunday. He added, "The staggering shipments from China cannot be ignored as speed is ~ 40% of shipments for Musk & Co. by 2022."

Ives and his team also see Tesla's profitability improving significantly over the next three to four years.

Tesla shares are down 6.2% since the start of the year, but are up 628% over the past 12 months.

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