(Bloomberg) -- Even the recent drop in Tesla Inc. shares isn't enough to dissuade its most bullish analysts.
The electric-vehicle maker, which has been under pressure amid stock sales by Chief Executive Officer Elon Musk, got a new $1,400 price target at Wedbush Securities -- a joint Street-high among analysts tracked by Bloomberg. Wedbush said Tesla could win half of what is set to be a $5 trillion EV market.
“The Street is continuing to digest the massive transformation coming to the auto industry around the electric-vehicle revolution,” analyst Dan Ives wrote in a note Thursday, raising his target from $1,100 and reiterating an outperform rating. “This green tidal wave will result in a $5 trillion market opportunity over the next decade, with Tesla leading the way.”
Telsa should benefit from both President Joe Biden's $550 billion infrastructure bill, which is set to boost the country's electric vehicle industry, as well as improving demand in China, according to Ives.
Competition in the sector is hotting up, with Apple Inc. said to be pushing to accelerate the development of its own electric car. Wedbush's Ives said in a separate note that Apple could enter into a partnership next year to develop its cars, with Tesla a potential candidate.
The shares were little changed in U.S. premarket trading at $1,093.96, and are down about 11% from their November peak.
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