That's according to Wedbush Securities analyst Dan Ives, who raised his most-optimistic price-target scenario and also lifted his one-year price target to $950 from $751 to reflect growing global demand for electric vehicles, particularly in China.
“The hearts and lungs of the Tesla bull thesis is centered around China as we have seen consumer demand skyrocket into 2021 not just for Model 3s, but for impressive domestic competitors such as NIO (NIO) - Get Report, XPeng (XPEV) - Get Report, Li Auto (LI) - Get Report and others,” Ives said in a research note.
“As such, we have significantly raised our forecasts with our expectations that Tesla now exceeds the 1 million delivery threshold in 2022 and could start to approach 5 million deliveries annually by the end of the decade if global EV demand continues at this pace."
Ives also forecast that EVs, which make up around 3% of global auto sales today, could reach 5% by the end of this year and 10% by 2025. By 2022, around 40% or more of Tesla’s sales could come from China, followed by Europe then the U.S.
"While there are 150+ automakers aggressively going after the EV opportunity globally, right now in the EV market we believe it's Tesla's world and everyone else is paying rent," Ives said.
The analyst also noted that a Biden presidency and a "Blue Senate" is very bullish for the likes of Tesla and other electric vehicle makers, and a potential game changer for Tesla and the overall EV sector in the U.S.
Shares of General Motors (GM) - Get Report hit record highs this week after the Detroit-based automaker unveiled a raft of new all-electric concept vehicles and outlined plans to retool its manufacturing and production facilities to focus entirely on clean energy in a big to become a legitimate rival to Tesla.
Tesla shares soared 743% last year and were trading at $856.99, in trading on Friday, u[ 1.42% The stock has gained almost 20% so far in 2021.
Chief Executive Elon Musk has become the richest person on Earth.