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.
© 2021, Eva Fox | Tesmanian. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
Legal Disclaimer --
This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.
Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.