Financial Associated Press (Shanghai, editor Zhao Hao) news, well-known Tesla bulls, investment bank Weedbush believes that after entering 2022, Tesla is still in a strong position. The reason is that Demand from China will drive business growth, and new plants in both the U.S. and Germany are expected to alleviate the shortage of supply.
Analyst Daniel Ives wrote in the note that Tesla's stock could rise nearly 30 percent over the next 12 months. Ives expects auto parts shortages to ease next year, allowing the company to better meet growing demand in China, while new plants in Austin, Texas and Berlin should alleviate global production bottlenecks.
Wedbush maintains Tesla's base price target of $1400 and a "outperform" rating. Ives noted that "the key to Tesla's bull market rhetoric remains China, which we estimate will account for 40 percent of the company's deliveries in 2022." ”
Ives estimates that Tesla will have the capacity to produce about 2 million cars a year by the end of 2022, up from about 1 million today. He noted, "What's troubling Tesla right now is an advanced (high-class) conundrum, where demand outweighs supply. ”
Not only is Wedbush bullish on Tesla, Argus Research also raised the target price of Tesla stock from $1,010 to $1,313 on Tuesday and maintained a "buy" rating.
Argus believes that even in the face of "increasing competition," the electric vehicle maker remains the "undisputed leader" in the industry.
Tesla's stock has performed well this year, with the company up nearly 55 percent as of Monday's close, and its market capitalization also exceeded $1 trillion during the year. While CEO Elon Musk has been selling stock since November, Tesla shares still rebounded more than 14 percent last week. He said on social media last week that he had "pretty much completed" his goal of reducing his 10 percent stake.
In the US stock market on Tuesday, Tesla reversed the decline and is now up 0.46%, which is bound to record five consecutive days of daily trading.
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