Tesla's (NASDAQ: TSLA) revenue will grow by 61% in 2022, CFRA Equity Research expects. The firm has a positive outlook on the company's development, as Giga Texas and Giga Berlin are strong growth drivers.
CFRA Equity Research analyst Garrett Nelson has a price target for Tesla of $1,100. He expects Tesla to gain momentum soon as new factories come into play. In a new note to clients, he wrote that the firm expects Tesla's revenue to grow 61% in 2022, 37% in 2023, and 17% in 2024 after growing 71% in 2021. Giga Berlin and Giga Texas will be the main driver of growth this year, as well as Model Y, for which most of the manufacturer's production facilities are set up.
“The primary driver of the anticipated revenue increase in 2022 and beyond is higher volumes from the startup of its new factories in Texas and Germany. Much of Tesla's capacity has shifted from producing the Model 3 to producing the Model Y, which debuted in March 2020.”
The analyst also expects Tesla vehicle sales to grow 53% in 2022, 39% in 2023 and 15% in 2024, after growing 87% in 2021. In addition to the general expansion in the global market, deliveries will jump due to the start of production of new models. Cybertruck and Semi are currently expected to enter the market in 2023.
In addition, CFRA expects Tesla to build factories in various countries, including India. Thus, the company will achieve an annual volume of 20 million units by 2030.
“Following the completion of its new factories in Germany and Texas, we think TSLA will build plants in India and elsewhere, as it executes on its goal to increase annual volumes to 20M units in 2030 (a 40x increase over 2020 levels.) TSLA's 2021 vehicle sales of 936K units were up 87% from 500K units sold in 2020. Deliveries are likely to ramp further when the Cybertruck and the Semi become available starting in 2023.”
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