Demand from China could help Tesla exceed its 500,000 delivery target, says a Wall Street tech analyst who sees the stock soaring as much as 56%

• Wedbush's Dan Ives said demand from China could help Tesla potentially exceed its once implausible annual delivery target of 500,000 vehicles.
• Tesla has seen robust demand in China, selling roughly 22,000 Model 3 vehicles in China in November. If momentum continues, the EV maker will likely hit its target, Ives said.
• Tesla reiterated its goal of 500,000 deliveries in 2020 in its third-quarter earnings call, though some analysts were skeptical it would be able to hit that target.
• Ives sees Tesla surging 56% from current levels to $1,000 in his bull case scenario.
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China could be the golden goose for Tesla.

That's according to Dan Ives, a Wedbush Securities senior tech analyst, who said in a note to clients on Sunday that demand from China could help Tesla reach or possibly exceed it's once implausible goal of 500,000 deliveries by the end of 2020. Ives sees Tesla surging 56% from current levels to $1,000 a share in his bull case scenario.

The analyst explained that Tesla has seen robust continued demand in China and if that continues in December, the EV maker could surpass its delivery target.In November, Tesla sold roughly 22,000 Model 3 vehicles in China.

"We believe the company is tracking to another strong month of December in China which could be the tipping point to get Musk & Co. to hit/exceed its 500k annual delivery target, an achievement not even on the map for the Street going back to the late spring/summer timeframe," Ives said.

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Tesla reiterated its goal of 500,000 deliveries in 2020 in its third-quarter earnings call, though some analysts were skeptical the company would be able to hit its target.

"The China growth story is worth at least $100 per share in a bull case to Tesla as this EV penetration is set to ramp significantly over the next 12 to 18 months, along with major battery innovations coming out of Giga 3 and elsewhere throughout the China EV supply chain," the analyst added.

Shares of Tesla closed up nearly 5% on Monday at $639 a share. The stock is up over 660% year-to-date.