Tesla’s stock (TSLA) jumped 2% when the market opened right after Canaccord Genuity increased its price target to $515 — a new high on Wall Street.

Canaccord analyst Jed Dorsheimer increased his price target on Tesla from $418 to $515 — a generous upside of almost $100 per share on the current trading price.

The analyst believes that Tesla will benefit from the accelerated electrification of the market in 2020.

He wrote in a note to clients today:

We believe the trend toward electrification will only accelerate in 2020. While bears have feared demand issues as a function of tax credit expiration for Tesla, we suspect a solid Q4 combined with the robust Q3 should put these fears to rest and put to rest this issue as the credit expires.

Jed Dorsheimer is ranked No. 5,069 out of 5,778 analysts on TipRanks with a success rate of 44% and an average return of -2.4%. He recommended buying Tesla right before the most recent rally:

Electrek’s Take

I agree with Dorsheimer that Tesla will not have significant demand issues in 2020, but I don’t get his logic that strong Q3 and Q4 are going to show that.

Tesla buyers had access to the tax credit in Q3 and Q4, so if anything, strong quarters during the period would show that the tax credit had a positive impact.

Nothing is going to prove that Tesla will have a strong 2020 without tax credit in the US until they actually do it.

With that said, I think they will have a strong year in the US overall, but it will primarily be due to Model Y sales. I am sure Model 3 sales will fall in the US in 2020 without the tax credit.

However, I think Model 3 sales will remain strong in other markets, like in Europe and Canada, in 2020.

What do you think? Let us know in the comment section below.

Full disclosure: I am long TSLA.

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