Tesla Inc (NASDAQ:TSLA)'s latest quarterly earnings, due on Wednesday night, should show healthy revenues despite the chip shortage that has seen demand greatly exceed supply.
The US$948bn electric vehicle (EV) giant is due to announce its fourth-quarter results once the UK market has closed.
Estimates for sales of US$16.3bn and earnings of US$2.26 look 'very beatable' suggests broker Wedbush.
Total production in the December quarter has already been announced at 306,000 units, some 20,000 ahead of Wedbush’s estimates.
Tesla struggled to meet demand last quarter, as it experienced five to six-month delays for delivery of its Model Y and Model 3 vehicles around the globe, Daniel Ives, analyst, said in a note.
“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,” he added.
“We believe by the end of 2022 Tesla will have the capacity for overall 2 million units annually from roughly 1 million today,” Ives said.
Wedbush reiterated its ‘outperform’ rating for Tesla, with a US$1,400 price target offering around 53% upside on its price in Tuesday afternoon’s changing of hands.