Deutsche Bank boosted its price target on shares of Tesla (TSLA) as the automaker continues to dominate in both North American and Europe in the EV space.
The analysts at Deutsche Bank believe that the shift to electrify the auto industry could help ‘extend Tesla’s EV lead considerably’.
The bank released a note on Friday that reiterated its Buy rating on the stock.
The reason for this is simple, Tesla’s battery technology, capacity and cost will help the world to accelerate to electrify.
Unlike other automakers, Tesla is already ahead of the electrification and is making small but impactful changes to its lineup of vehicles.
In addition, 2022 could be a pivotal year for Tesla’s future growth with plans to open two new assembly plants.
The first assembly plant is in Berlin, and the second is in Autin, Texas. These plants will help the existing plants in Shanghai, Fremont and Nevada to move inventory and meet demand.
In addition, Deutsche Bank increased its estimate on Tesla‘s fourth-quarter deliveries to 282,000. The analysts boosted the company’s fourth-quarter revenue to match $16.1 billion from $15.4 billion.
According to Deutsche Bank modelling, Tesla will deliver 1.47 million units in 2022. However, this number could increase if chip availability and supply chain constraints are mediated.
Disclaimer: Scott does not own shares of Tesla (TSLA), and has no plans to initiate a position within 72 hours.