A New Street Research analyst raises his price target for Tesla (NASDAQ: TSLA) to $1,580, a new high on Street. The price increase comes amid expectations that Tesla will end the year with delivery figures well above 1 million units, and will also actively develop in 2022.
New Street Research analyst Pierre Ferragu is raising his price target for Tesla to $1,580, a new high on Wall Street. He points to strong production figures for 2021, as well as several strong catalysts for the company's development in 2022.
Ferragu expects Tesla to end this year with an annual output well above 1 million units and will likely be able to deliver a strong Q4 earnings beat. New Street Research expects production at Giga Berlin and Giga Texas to grow throughout the year and help Tesla achieve 1.5 million deliveries in 2022.
In addition to the development in the vehicle production direction, Ferragu believes that next year a lot of attention will be paid to the 4680 battery cells, developed by the manufacturer. The analyst expects the production of 4680 batteries to be in full swing and growing by the end of 2022. New locations will emerge throughout the year that will support approximately 50% annual growth.
"We expect 4680 production to be in full swing by year end and grow rapidly from there, and new sites to break ground in order to maintain ~ 50% annual growth."
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Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.