Tesla Inc. overcame a “major overhang” after German authorities cleared its production at a new factory in Berlin, according to Wedbush analyst Dan Ives.
Ives, a well-known Tesla bull, sees the stock rising, emphasizing the Berlin “Gigafactory″ as of utmost importance to Tesla and its stock price.
Ives said that the company’s Model Y is likely to be “front and center” at the factory over the next 12 to 18 months.
There are currently five to six-month delays for Model Ys and certain Model 3s in different parts of the world, Ives said, noting how Tesla’s factories in Austin and now Berlin should help to alleviate these issues and solve production bottlenecks.
Wedbush believes that Tesla will increase its annual run rate from 1 million units in 2021 to 2 million in 2022.
Ives has a price target of $1,400 on Tesla’s stock, almost 70 percent higher than Friday’s closing price of $838.
Tesla sees the Berlin factory eventually producing up to 500,000 vehicles annually.
