Tesla could rise 30% next year on China demand, Wedbush says
Tesla is in a strong position heading into 2022, with catalysts including robust Chinese demand and new factory openings in the U.S. and Germany, according to Wedbush.
Shares in the electric-vehicle maker could gain nearly 30% over the next 12 months, analyst Daniel Ives wrote in a note. He expects component shortages to ease next year, allowing Tesla to better meet growing demand in China, while new factories in Austin, Texas and Berlin should alleviate global production bottlenecks.
“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,” Ives said, reiterating his outperform rating and $1,400 price target.
The stock slid 0.8% in early trading Tuesday, breaking a four-day rally.
Tesla shares have had a stellar year, with a 55% gain through Monday’s close that propelled the company’s market value above $1 trillion.