With Tesla CEO Elon Musk selling stock, along with all sorts the other chaos across the globe, Tesla's share price has been on a rollercoaster ride of late. However, it's now on the way back up as Musk may be done selling, and the company's future plans are attracting the attention of Wall Street analysts.
Just this week, well-known Wall Street analyst and Managing Director, Equity Research at Wedbush Securities, Daniel Ives, released a new message to investors. Ives believes that by the end of 2022, Tesla will have doubled its global production capacity.
Tesla is currently in the final stages of opening two new factories, one in Austin, Texas, and another near Berlin, Germany. Meanwhile, the US electric automaker has increased its production capacity at its Gigafactory in Shanghai, it's expanding in Fremont and Nevada, and it's actively considering locations for future factories.
Nonetheless, if you order a Tesla vehicle today, there's a chance you could wait up to a year to take delivery, though people are still placing orders in massive numbers. Hopefully, once the new factories come online and reach ramped-up production, Tesla will be many steps closer to solving its problem of demand exceeding supply.
The number of vehicles Tesla is capable of producing per year in the future depends on how quickly the company can ramp up production at the new factories. Currently, Tesla has a run rate of about 1 million cars per year. That doesn't mean the automaker will produce 1 million cars in 2021, since the run rate has been increasing over the course of the year.
Similarly, Tesla may not be able to produce 2 million cars in 2022. However, Ives expects the automaker will reach that capacity by the end of 2022. He wrote in the note via Electrek:
"We believe by the end of 2022 Tesla will have the capacity for overall ~2 million units annually from roughly 1 million today…"
As Tesla ramps up production in Texas and Berlin, it may ease constraints in Fremont and Shanghai. It will be especially helpful for the brand if it can focus more on local deliveries in China. Tesla's Shanghai Gigafactory is cranking out cars in the largest EV market in the world, but having to export many of them as Chinese customers are eager to take delivery.
Along with the note, Ives stood firm on his $1,400 Tesla stock price target, as well as his $1,800 bull case. At the time of writing, Tesla's share price was right around $1,100.