Elon Musk Comeback:
This year, Tesla has had two bear markets (with a bull market in between). And, following a 30% drop into a critical support level. We wouldn’t be shocked if it tried to bounce from here — at least in the short term.
However, traders get intrigue to hear. That Elon exercise his entitlement to purchase slightly more than 2 million shares, revealed in a filing today. And what may really aid this stock bounce is if Santa’s rally takes off and continues into the new year.
Following a rocky 2021 marked by chip shortages and logistical challenges. 2022 could present a more welcoming climate for the impending EV revolution.Wedbush analyst Daniel Ives believes. Stage is set for EVs to take a “major stride forward in pushing customer adoption in this green tidal wave.
Numerous winners as part of the auto industry’s largest transition. Since the 1950s.”
However, one person outperformed the others. While the challenges mentioned above have clouded 2021. Tesla (TSLA) has weathered chip supply bottlenecks “better than any manufacturer” over the last six months. Putting it in a “clear position of strength” moving into 2022.
Ives sees three significant catalysts for Tesla next year, and believes that if all goes as planned, they will be a “huge driver of the stock moving higher.”
China is the “key variable” in the Tesla bull thesis. Tesla had many gaffes (PR/safety) in 2021 that damaged the China bull tale, but the business finally recovered, and Ives predicts the far east giant will “represent 40 percent of deliveries” in the next year. According to Ives, China’s stock might be worth $400 per share by 2022.
Second, with the “important” Giga openings in Austin and Berlin, Tesla’s “high-class” problem of demand now outstripping supply addressed. Given the present difficulties in European logistics, the latter opportunity is especially important.
The new facilities will more than quadruple capacity by the end of 2022, from around 1 million to 2 million units per year.
The Austin factory slated to open early next year, and while some regulatory hurdles remain in Berlin, a January/February start is still possible.
Finally, the projected resolution of global supply chain challenges, which have been a “drag on total unit growth,” is the third stimulus. Ives predicts that by 2022, the situation will have “substantially moderated.”
Visit us on: www.milliva.com