By Dhirendra Tripathi

Investing.com – Tesla stock (NASDAQ:) was up 1.4% in Tuesday’s premarket trading after a Wedbush analyst raised his target to $1,400, citing the clear pivot to electric vehicles and the company’s dominance of that as reasons for his optimism.

Analyst Daniel Ives’s target is 28% higher than the share’s previous closing price of $1,093.94. Ives had previously set a $1,100 target for the stock.

According to reports, the analyst believes the stage is now set for the entire EV ecosystem to take a “significant step forward”. Ives said that higher adoption by customers will lead to the greatest transformation of the automobile industry in 70-years.

Ives believes Tesla’s successful tackle of the chip shortages, better than any other automaker, puts it in a position of strength heading into the new year. The analyst also has a bull case price target of $1,800 for the stock, assuming Tesla’s successful navigation of the Chinese market, the world’s largest market for EVs.

Ives claims that Tesla currently has a China run-rate of about 50,000 per month for the fourth quarter. This could increase in the first half next year. According to Ives, the problem of chip shortage is temporary.

Ives stated that openings of gigafactories in Austin and Berlin would solve the problem where demand exceeds supply.

An analyst predicts that the automaker will deliver between 1.4 and 1.5 million units in 2022. This is with increasing profitability. Tesla shipped 6,27,572 units during the current fiscal year’s first nine.