Shares of Tesla (NASDAQ:TSLA) were up sharply on Monday. As of 10:30 a.m. EDT, the stock was up 5.5%.
The growth stock's sharp move higher is likely driven by an analyst's decision to boost his 12-month price target for shares to $1,900.
Shares of Tesla could rise to $1,900 within 12 months, Wedbush analyst Daniel Ives said in a research note on Monday. This view is up from his previous 12-month price target of $1,800.
To support his more bullish outlook for the stock, Ives said he believes demand for electric vehicles in China is accelerating in recent months. Tesla, of course, is well positioned to take share in the market following the late-2019 launch of a factory in Shanghai, where the company produces a China-made Model 3 specifically for customers in China. The new Gigafactory is Tesla's "linchpin of success" in the market, according to Ives.
In addition, recent price cuts could help boost demand for Tesla vehicles in the U.S. and Europe, Ives believes.
Importantly, Ives asserts that Tesla seems back on track with its pre-coronavirus full-year delivery target of 500,000 vehicles, despite significant detours earlier this year with factory shutdowns due to the pandemic.
That 500,000-vehicle total in 2020 would translate to 36% year-over-year growth.