Nasdaq TSLA Tesla

Tesla’s vehicle registrations recorded in California, its largest US market, spiked almost 63% in the fourth quarter versus the same period last year, according to a Reuters report, which cited data from Cross-Sell.

The data showed that the quarterly registrations were largely driven by demand for Tesla’s (TSLA) Model Y. Registration numbers in California, a bellwether for the electric vehicle (EV) maker, rebounded from a third-quarter low of about 16,200 vehicles to around 22,117 vehicles in the three months ended December, according to the report released on Wednesday.

In the state of California, about 11,417 registrations were recorded for Tesla’s Model Y compact crossover utility vehicle, which exceeded those for the Model 3. Registrations for Tesla’s Model 3 mass-market sedan dropped 34% on a yearly basis to 7,044.

Total fourth-quarter vehicle registrations in the 23 states, where data was collected, stood at 44,749, with Model Y accounting for nearly half the registrations, Reuters reported.

For 2020, the EV maker reported 2020 deliveries of 499,550 cars, which surpassed analysts’ expectations of 481,261 units, but fell fractionally short of CEO Elon Musk’s 500,000 target. Tesla is scheduled to release fourth-quarter results after market close on Jan. 27.

Shares have skyrocketed 733% over the past year as demand for EVs is on the rise and the stock was included in the benchmark S&P 500 Index. (See TSLA stock analysis on TipRanks)

Nonetheless, Oppenheimer analyst Colin Rusch this week lifted the stock’s price target to a Street-high $1,036 (22% upside potential) and reiterated a Buy rating.

“Given TSLA stock doubling again since November, we believe investors are grappling with where shares go from here. We believe bulls are betting on TSLA leading commercialization of autonomous vehicles technology,” Rusch wrote in a note to investors. “While we continue to have misgivings about risks related to TSLA not incorporating LiDAR into its vehicles yet, we believe the learning cycles enabled by having over 1M vehicles on the road is an extraordinary advantage.”

The past year’s rally has left the rest of Wall Street analysts mostly sidelined on the stock. The Hold analyst consensus shows 13 Holds, 6 Sells and 7 Buys. That’s with an average price target of $ 588.68, implying 31% downside potential lies ahead over the coming 12 months.

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The Tesla (TSLA) juggernaut was virtually unstoppable in 2020. With less than a month gone in 2021, the EV pioneer has continued the upward trajectory. The stock has already accumulated 20% of gains year-to-date.

While remaining on the sidelines, Wedbush analyst Daniel Ives believes Tesla shares should have a bit more fuel left in the tank. The analyst boosted his price target significantly to $950 (from $715), implying ~12% upside from current levels. There's no change to Ives’ rating, which stays a Neutral (i.e. Hold) for now. (To watch Ives’ track record, click here)

Ives centers his thesis on China, where the analyst says consumer demand has skyrocketed into 2021. However, the uptick has not been solely for Tesla’s products but also for “impressive domestic competitors” such as Nio, Xpeng, Li Auto.

Naturally, what this indicates is that consumers’ overall appetite for electric vehicles is on the rise. According to Ives, this requires an expectation readjustment, and a positive one, at that.

“We have significantly raised our forecasts in our Wedbush Tesla Delivery Model with our expectations that Tesla now exceeds the 1 million delivery threshold in 2022 and could start to approach 5 million deliveries annually by the end of the decade if global EV demand continues at this pace,” the 5-star analyst said. “We believe overall that EVs, which make up 3% of global auto sales today, could reach 5% by the end of 2021 and 10% by 2025.”

China is not the only place where the EV race is heating up. Ives counts “150+ auto makers aggressively going after the EV opportunity globally,” although the analyst still considers the rising industry to be “Tesla's world and everyone else is paying rent.”

That said, the company needs to keep on its toes, especially where battery tech is concerned; Both Nio and General Motors are shaping up to be fierce competitors in this field, which could be a “key differentiator over time.”

More close to home, in the U.S. there is another potential "game changer." The incoming Biden administration will be backed by a Blue Senate and will have a decidedly green driven agenda; its policies will certainly be beneficial for Tesla and the overall EV sector.

“We believe while the impact of a Biden Administration taking the reigns in January (and a Blue Senate) will have wide reaching ramifications across all sectors, in particular the focus on environmental issues and reducing the domestic carbon footprint could have a dramatic impact for EV vehicles in the near-term,” Ives concluded.

Maybe so, but pertaining to Tesla, the rest of the Street will need further convincing. Based on 7 Buys, 14 Holds and 6 Sells, the analyst consensus - like Ives - rates Tesla a Hold. The bears are in the driving seat, as the average price target hits $577.22 and implies possible downside of 32% in the year ahead. (See TSLA stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.