Deutsche Bank: 2022 could be a pivotal year for Tesla

Tesla delivered a total of 936,000 vehicles in 2021, an increase of 87% over 2020. Although it still has not reached 1 million vehicles, Deutsche Bank is still optimistic that Tesla will continue to expand its lead.

Deutsche Bank recently released its latest report, raising Tesla's price target from $1,000 to $1,200, reiterating Tesla's "buy" rating. The report points out that Tesla's trajectory in terms of battery technology, specifications and, especially cost, may help accelerate the global automotive industry's transition to pure electric and significantly expand its leading edge in the field of electric vehicles.

Analysts at Deutsche Bank pointed out that Tesla's 2022 could be a key year for its future growth and profitability, citing two new plant expansions (soon to be commissioned), one in Berlin, Germany, the other in Austin, Texas, usa, and other bullish catalysts.

Due to the increase in delivery of Tesla's Model 3 and Model Y in China, Deutsche Bank raised Tesla's fourth-quarter revenue forecast to $16.1 billion from $15.4 billion.

Deutsche Bank expects Tesla to deliver 1.47 million units in 2022, and if chip supply improves, the annual delivery volume is expected to be further improved.

In October 2021, Tesla's market capitalization exceeded $1 trillion for the first time, surpassing the sum of several automakers such as General Motors, Ford, Toyota, Volkswagen, Stellantis, and BMW.

Citi analyst Itay Michaeli also expressed optimism about Tesla's trend, raising Tesla's new target price from $236 per share to $262 per share, noting that supply and demand conditions are improving, and despite recent unfavorable profits, electric vehicle manufacturers will remain strong enough to drive profits year on year.

Michaeli was one of eight analysts surveyed by FactSet to give Tesla a "sell" rating, and the new price target was significantly lower than the average Wall Street analyst estimate of $861.41 per share, reflecting Citi's belief that Tesla's current valuation carries a high risk.

Michaeli added that if you look at other companies close to Tesla's market capitalization, you will find that these companies (on average) are 8 times higher than Tesla's current market expectations for 2021 and 3 times higher than Tesla's market expectations for 2025. Compared to Tesla, Michaeli is more bullish on GM, believing that the company will benefit from the launch of ICE trucks and electric vehicles, and will enter a cycle of strong demand, maintaining a "buy" rating and raising the price target from $90 per share to $96 per share.

"Barron"s" contributor Ben Levisohn wrote that Tesla's stock price in 2021 continues to be affected by Musk. Musk is out of control, launching attacks on the Biden government and politicians, unable to do a good job of government-business relations and doing a good job of public relations for his own business. Both Ford and General Motors are catching up, which also has a relative impact on Tesla's stock price performance. With the eyes of U.S. start-up electric vehicle manufacturers Nikola, Lucid Motors and Rivian, Tesla no longer dominates the electric vehicle market. Looking ahead, Levisohn believes Tesla needs to prove that it can maintain its market leadership and grow on a scale.

With the boom in electric vehicle sales, 2 out of every 3 electric vehicles sold in the United States are Tesla. Cathie Wood, the goddess of stocks and the helm of Ark investment management, continues to be bullish on Tesla and recommends adding to Twitter.