Wedbush maintains a target price of $1,000 for Tesla (NASDAQ: TSLA), as the company has a clear direction for development. The factories of the manufacturer in Austin and Berlin are a "major positive," which should be decisive in 2022.
Tesla shares continue to perform well following the announcement of production and delivery data for Q3 2021. Wedbush analyst Dan Ives rates the stock as Buy and believes it will soon be worth $1,000, which is his official price target.
In his analysis, Ives does not focus on the global chip shortage or new self-driving features the company is rolling out, as this is not the most important thing in his view. The analyst focuses on manufacturing facilities and how they are the main key to Tesla's success. "While the chip shortage has been a clear headwind for Tesla and the overall auto/tech industry, we believe building out manufacturing capacity globally remains a key to Musk & Co. success in 2022 and beyond," wrote Ives in a Sunday research report.
The semiconductor shortage will continue to affect all automakers, leading to a further, three-million vehicle cutback in production schedules in the fourth quarter, equal to about 13% of planned production. However, Tesla has handled the chip shortage significantly better than others in the industry. Tesla vehicle sales in the first nine months of 2021 increased almost 100% over 2020.
"Austin and Berlin set to expand Tesla capacity into 2022," added Ives calling the expansion a "major positive." If the production ramp goes smoothly, Tesla might deliver 1.5 million vehicles in 2022, while Wall Street estimates around 1.3 million.
Apart from producing additional vehicles at Giga Berlin, Tesla can also increase its profit margins. Local delivery of cars--serving Europe from a European plant--should be cheaper than shipping cars from Shanghai, as Tesla has been doing recently.
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