Wedbush raised Tesla's (NASDAQ: TSLA) price target to $715 from $560, indicating that demand for electric vehicles continues to grow globally. This dynamic will primarily benefit Tesla, which is a leader in the production of electric vehicles.

Daniel Ives, a Wedbush analyst wrote that, in the next five years, the demand for electric vehicles will grow from ~ 3% to 10%, and Tesla will capture a disproportionate share of the market, especially in China. The firm believes that this key region could account for ~ 40% of the company's deliveries by 2022.

“Heading into year-end 2021, we are seeing a major inflection of EV demand globally with our expectations that EV vehicles ramp from ~ 3% of total auto sales today to 10% by 2025.

“We believe this demand dynamic will disproportionately benefit the clear EV category leader Tesla over the next few years, especially in the key China region, which we believe could represent ~ 40% of its EV deliveries by 2022 given the current brisk pace of sales."

Ives kept his rating on Tesla at neutral, citing the growing competition in the electric vehicle market. As the market grows, this will lead to many winners.

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