A top Wedbush analyst, Dan Ives, boosted his price target on Tesla's stock (TSLA) by 27%, matching the highest on Wall Street.

Ives explained:

“We believe there is $5 trillion of EV auto market dollars up for grabs with Tesla likely to own $2.5 trillion of this pie. We estimate China is worth $400 per share to the Tesla story for 2022 and raising our price target from $1,100 to $1,400 with our bull case $1,800.”

The analysis is based on a conservative EV penetration rate of 10% in 2025 and 30% in 2030.

He suspects that supply chain issues are affecting the production of Model 3 and Y by 15%.