Tesla stock will soar 28% in 2022 as China remains a key growth 'linchpin' and production capacity doubles, says Wedbush

There is a Model 3 in China.

The image is Tang Ke/Costfoto/Barcroft Media.

China remains a growth "linchpin" and production capacity will double on the opening of new Gigafactories, according to a Wedbush report.

The electric-vehicle maker's shares could rise to $1,400 in the next 12 months, according to an analyst. He had a bull case price target.

40% of the deliveries for the EV maker will be in China in 2022, according to a note by Daniel Ives.
He maintained that the chip shortage was a transitory issue. He said that there is a high-class problem with more demand than supply.

The analyst thinks that the new Gigafactories in Austin, Texas, and Berlin will help alleviate global production problems.

He said that by the end of 2022, they believe that the company will have the capacity for 2 million units annually.

The logistical crises facing Europe will be solved by the Berlin plant, despite the red-tape bureaucratic issues the EV maker still has to resolve.

The market cap of the company would rise to $1 trillion in 2021.

Business Insider has an original article.