Tesla TSLA stock ticked higher after a price target increase from analysts at Wedbush. However, Wedbush analyst Daniel Ives maintained his Neutral rating on Tesla stock despite the price target increase. His new bullish scenario target stands at $1,250, a 25% increase.

Tesla stock rises after Wedbush price target increase

Wedbush's new base price target for Tesla stock is $950, which is more than $100 higher than where the shares are currently trading. However, Ives still rates them at Neutral, which is the rating he has had on them for almost two years, according to MarketWatch.

Ives believes the core of the bull thesis for Tesla stock is China, where consumer demand for electric vehicles has skyrocketed over the last year. Chinese consumers are snapping up not only Tesla's Model 3 but also EVs from "impressive" domestic firms like Nio NIO, Xpeng XPEV, and Li Auto LI. Ives added that even though competition is on the rise, Tesla is still on "top of the EV mountain."

He believes Tesla will deliver more than 1 million vehicles next year and expects deliveries to approach 5 million annually by 2030. Ives noted that more than 150 automakers are "aggressively" pursuing EVs, but he believes "it's Tesla's world and everyone else is paying rent."

Not everyone is bullish on Tesla

Byron Wein of Blackstone told Yahoo Finance Live that he believes Tesla stock is "very fully priced." He thinks the shares accurately reflect the automaker's future potential. Wein also said that the big question now is how long it will take Tesla to sell enough cars to justify its current market value.

Additionally, while Tesla has been performing well in China, one analyst is concerned about how it's doing in Europe. Saxo Bank analyst Peter Garnry noted that the automaker has been giving up market share in Europe. The Model 3 is now only the fourth-best selling all-electric vehicle on the continent. Meanwhile, the European EV market is now the world's largest based on sales after a sizable jump in 2020, while China's EV market slumped.

The percentage of new car registrations for electric vehicles in Europe is twice what it is in China and five times the share of registrations in the U.S. Garnry also said investors should be "alarmed" by the fact that Renault, Volkswagen, and Hyundai have outpaced Tesla in Europe recently. He added this fact should call into question Tesla's $805 billion market value.

Tesla stock is up more than 20% already this year.