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Tesla (TSLA) is set to ramp up production at its Giga Austin factory in about a week, according to Wedbush.
In a recent note, Wedbush Managing Director Dan Ives wrote that launching the factory in the Lone Star State this month could accelerate production and alleviate the supply chain bottlenecks for the electric vehicle manufacturer.
“Based on our analysis of Giga Austin it appears paperwork is now clearing the way for Model Y production starting over the next 7-10 days,” Ives wrote, adding: "Launching the Austin production in early January is very important to Tesla expanding both domestic and global production of Model Ys, which are set to have a massive year in 2022.”
Tesla delivered more than 936,000 vehicles last year – up 87% from 2020, the company’s first fully profitable year. However, the majority of those vehicles were Model 3 sedans and Model Y crossover vehicles, which are Tesla’s lower-priced, higher-volume models.
And now, with all eyes on the launch of the company’s factories in Austin and Berlin, Wedbush believes that "Tesla will have the capacity for overall 2 million units annually from roughly 1 million today."
It's still unclear when cars would begin rolling off the assembly line. Generally, Wall Street expects the EV company to deliver around 1.5 million units total in 2022.
CEO Elon Musk had targeted the end of 2021 for the start of production, but there has been no formal announcement of the factory opening. The Giga Texas has been a hub of activity this month, as production remains underway.
“While China will be a key growth driver, we believe demand is building for Tesla's Model Y in the US and Europe with 2022 likely another 'breakout year' for Tesla and the EV industry,” Ives wrote.
Tesla stock was down less than 1% in midday trading on Monday, hovering around $1,000 per share after being down as much as nearly 5% in early trading.
Wedbush maintains its “outperform” rating on the stock, with a $1,400 price target and bull price target of $1,800.
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter: @daniromerotv