Wedbush reiterates its Outperform rating on Tesla (NASDAQ: TSLA) and raises its price target to $1,400 from $1,100, as the manufacturer is in a "clear position of strength."
Wedbush reiterates its Outperform rating on Tesla and raised its price target to $1,400 from $1,100, citing catalysts due for the company in 2022. Among them is high demand in China, which, according to the company, will be 40%. "The linchpin to the overall bull thesis on Tesla remains China, which we estimate will represent 40% of deliveries for the EV maker in 2022," wrote Daniel Ives. In addition, the opening of new factories in the U.S. and Germany should solve the bottlenecks in the company's production.
"Right now Tesla has a high-class problem of demand outstripping supply with this issue now translating into ~5-6 month delays for Model Ys, some Model 3s in different parts of the globe," Ives wrote in a note. "The key to alleviating these issues is centered around the key Giga openings in Austin and Berlin which will alleviate the bottlenecks of production for Tesla globally," he continued.
Ives expects chip shortages to diminish in 2022, allowing Tesla to better meet growing demand in China. The analyst believes Tesla will deliver 1.4-1.5 million vehicles next year with improved margins.
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About the Author
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.