Tesla Inc. could post gains of as much as 30% in the next year given the strong demand in China and new factory openings in the US and Germany, Bloomberg reported.

  • Wedbush Analyst Daniel Ives said component shortages could ease in 2022, which will push Tesla to have a higher capacity to meet growing demand in China. It will also boost factories in Austin, Texas, and Berlin.
  • Ives said China remains the linchpin to the overall bull thesis on the company, which he expects to represent 40% of deliveries of the companies in 2022. He also affirmed the outperform rating and $1,400 price target.
  • Ives estimated that Tesla will have an annual production capacity of about 2 million cars by the end of next year, doubling its current 1 million capacity. Tesla has a high-class problem of demand outstripping supply.

Tesla shares have climbed 55% so far this year, bringing the firm’s market value over $1 trillion. TSLA is up 1.47% premarket.