Wedbush Securities released the latest report, claiming that it is very optimistic about the future prospects of electric vehicles and Tesla.
Wedbush stated in the report that demand for electric vehicles from Europe, the United States, and especially China will grow very strongly. The reasons include that Europe’s determination to reduce emissions is stronger than ever. The administration of the incoming US President-elect Joe Biden hopes to make progress in tackling climate change, so tax credits and other incentives may soon be introduced.
At the same time, China’s demand remains high. Wedbush predicts that Tesla’s sales of electric vehicles in China will double in the next few years, and said that this will benefit Tesla a lot. The report said: “We believe that China’s electric vehicle sales will account for 40% of Tesla’s total global sales in 2022, and its Shanghai plant is a huge competitive advantage.”
The report also pointed out that local startups such as BYD, Weilai, Xiaopeng and Ideal will also “run their full power.” When this report was released, Tesla announced that it would invest US$6.4 million to build a new charging station factory in China.