Demand for Tesla‘s vehicles in China has been a key part of the story for its stock. Now one analyst has increased his price target, saying he believes Tesla’s manufacturing and demand trajectory in China” is “robust and stronger than expected” for the third quarter.Tesla stock price objective to $475 for China demandWedbush analyst Daniel Ives raised his price objective for Tesla (NASDAQ:TSLA) stock from $380 to $475 and reiterated his Neutral rating. The shares climbed higher than 4% in early shopping for and promoting this morning after his price objective improve.In his report, Ives talked about Tesla has had sturdy provide numbers in China due to pent-up demand for the China-built Model 3 and updated price cuts. He talked about the automaker has elevated its market share as compared with house opponents as Gigafactory Three in Shanghai has progress.He moreover believes that Tesla’s margins on Model 3s purchased in China as compared with these purchased inside the U.S. and Europe are elevated, which may significantly improve the company’s profitability profile inside the coming years. He expects China to make up higher than 40% of Tesla’s world product sales, presumably by early 2022.For that trigger, he raised his base case price objective for Tesla stock and maintained his bull case objective of $700.Tesla Motors Inc (NASDAQ:TSLA), Sign, model, model, stock, automaker, corporationKatherine Welles / Shutterstock.comQ2 2020 hedge fund letters, conferences and moreTesla demand in China stays strongThe latest information from China actually comes from Hong Kong pretty than the mainland, nonetheless it reveals that Tesla is the popular car model inside the metropolis, along with autos with inside combustion engines. The data comes from the Hong Kong Transport Division, and Tesla launched it on its Weibo internet web page.The company talked about 912 Tesla autos had been registered in Hong Kong in August. Primarily based on Teslarati, The Model Three is now primarily probably the most sought-after automotive in Hong Kong a 12 months after deliveries started inside the metropolis. Giga Shanghai has been delivering Tesla autos to Chinese language language buyers since January.Story continuesTesla is now engaged on Part 2 of Giga Shanghai, which is able to begin out producing the Model Y late this 12 months or early subsequent 12 months.Attempting forward to the battery dayIves moreover wrote about Tesla’s upcoming battery day in his report this week. He describes the Sept. 22 event as a “lynchpin occasion.” He expects the company to announce quite a lot of “sport altering” developments for its batteries on the event.He well-known that batteries have flip into more and more extra very important for electrical autos as opponents inside the space ramps up. He believes the enhancements throughout the Gigafactory and the Fremont facility keep “the important thing elements in Tesla’s success on the battery entrance.” He moreover believes the automaker is close to asserting the million-mile battery on the event.He believes the battery may remaining for a few years and be able to withstand all forms of local weather and terrain. It would even be a severe milestone for the company and an infinite step in the direction of competing with typical gasoline-powered autos.One different aspect of the battery day may very properly be decreasing the price of manufacturing batteries, shifting in the direction of the essential factor $100 per kWh objective.New provide numbers drive Tesla stock price targetIves updated his provide estimates as properly. For the third quarter, he elevated his provide estimate to 130,000 autos, along with 117,000 Model 3s and Model Ys and 11,000 Model S and Model X autos. His earlier estimate was 123,000, along with 112,000 Model 3s and Model Ys and 11,000 Model S and Model X autos.The desire enhance for the third quarter convey his full for 2020 to 470,000 autos, as compared along with his earlier estimate of 457,000. He expects the Model Three and Model Y to make up about 90% of the complete models. He moreover boosted his fiscal 2021 provide amount to 680,000, representing a 45% year-over-year improve. He appears for 622,000 Model Three and Model Y autos subsequent 12 months and 59,000 Model S and Model X autos.By Michelle Jones