Tesla is poised to become the next $1 trillion company, thanks to potential demand in China, according to one analyst.
Tesla has been growing at an incredible pace, recently passing Facebook as the fifth most valuable US company. China has been a big part of that growth, helping it nearly hit its goal of shipping 500,000 vehicles in 2020.
According to Wedbush’s Dan Ives, China’s demand for electric vehicles will likely propel Tesla to its next milestone, shipping one million units in a year.
“If China stays on its current path for Tesla, Musk & Co. could hit one million delivery units globally by 2022. This speaks to our thesis that Tesla will hit a trillion dollar market cap in 2021 despite this risk-off moment for EV stocks with the bears coming back to life after a long hibernation in their caves over the past year,” Ives said.
As part of its meteoric rise, Ives believes Tesla will pass the $1 trillion market capitalization threshold in 2021, making it one of only a handful of companies to do so.