It’s time for investors to buy Tesla because the Inflation Reduction Act will have a significant impact on the electric vehicle industry, according to Wolfe Research. Analyst Rod Lache has upgraded Tesla’s stock to outperform its peers, saying the electric vehicle maker and its customers could rake in nearly $11 billion from the government’s incentives. U.S. government by 2025. Meanwhile, electric vehicle manufacturers “will become more profitable than manufacturers of electric vehicles.” [internal combustion engine] vehicle; 180 degrees inversion from current expectations “based on a clear path to cost parity”. With the passing of the IRA, Tesla’s mid-decade earnings power now appears to be much stronger. In fact, TSLA may be the only OEM to achieve a full $7,500 purchase credit for vehicles it sells in the US before midterm,” Lache wrote in a note Tuesday. electricity to $7.40 and $16 respectively, up from $6.12 and $12.70 He raised his 12-month price target to $360 from $280. implied a 33% gain from Tesla’s closing price on Friday at $270.21 Shares were up 1.2% in pre-market trading Tuesday. Lache expects Tesla to be cleared soon. The boost from the Inflation Reduction Act because the company will quickly meet IRA requirements to manufacture or assemble more than 50% of battery components in North America, meanwhile, Tesla’s factories in Reno and Austin also will pay the company a production tax credit starting next year, which could cut the cost of a typical Tesla car by $3,400.” As we sat down to draft the report this for the past few days, the main results are clear g: The Inflation Reduction Act stands out as the most consequential development for the US Auto Industry we’ve seen in a very long time,” Lache wrote. “We believe this development is still far from fully appreciated,” he added. — Michael Bloom of CNBC contributed to this report.