Wedbush analyst Daniel Ives highlights that Tesla (NASDAQ:TSLA) unit deliveries are trending well ahead of the Street based on March quarter demand. Ives believes China and Europe are tracking at least 15%+ ahead of consensus. Adding this to the U.S. Model Y demand and Tesla could be at a 2 million unit run-rate exiting 2022, Ives said.
The analyst said the current oil/gas price surge due to the situation between Ukraine and Russia has accelerated EV demand globally. He adds that many buyers sitting on the EV-fence will be coming over to market leader Tesla.
Ives believes Tesla's stock has been "way oversold" given the risk-off mentality among tech investors on Tesla's stock price. He sees a turn over the past few weeks as investors can better appreciate what the launch of Giga Berlin means for the Tesla supply story this year and going forward.
While China has been the key growth driver for Tesla, Ives said it looks like another "breakout year" with surging Model Y's demand.
The analyst reiterated an Outperform rating and $1,400 price target on Tesla.
By Lon Juricic