Tesla’s stock (TSLA) is again pushing to new highs today after a note from a Wall Street analyst seeing higher demand in China.

The electric automaker’s stock has been on fire for month, but it also had an exceptionally good week last week.

It started very well, thanks to a new note from Wedbush Dan Ives, who raised his price target on Tesla’s stock to $1,900 last Monday.

Just a week later, Ives is at it again with a new note on Tesla about improved demand in China, according to the analyst:

We believe the production and demand trajectory in China for Tesla remains robust and stronger than expected for 3Q with clear momentum heading into year-end. The pent-up demand in the China EV market for Model 3’s and recent price cuts are creating a ‘perfect storm of demand’ for Musk & Co. in this key market with increased market share vs. domestic competitors as the Giga 3 success story continues to play out.

The analyst predicts that the Chinese market is going to add significant profitability for Tesla within the next five years:

With the China growth story, Tesla could now have $35+ of earnings power by 2025/2026 vs. our prior estimate of $20-$25.

Strangely, he did not increase his price target of $1,900 per share, which is one of the highest on Wall Street, but Tesla already blew past it after he announced it last week.

But Ives did increase his “bull case” price target to $3,500.

It was enough to help Tesla’s stock jump by as much as 4% in pre-market trading this morning.

Tesla is now trading at a new high over $2,100 per share and its overall market capitalization is near $400 billion.

Dan Ives is ranked No. 136 out of 6,890 Analysts on TipRank with 65% success rate and 18.7% average return.

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