News
Three reasons Tesla will continue to go higher in ’22, according to one of its biggest bulls
Tesla will close out 2021 with record figures for its production and deliveries, continuing a streak that has dated back to 2012. However, 2021 is likely to be eclipsed by 2022, according to Wedbush analyst Dan Ives, who gave three reasons why Tesla (NASDAQ: TSLA) will continue to move upward, making the new year its biggest to date.
Ives, who has been one of Tesla’s most notable bulls on the Street throughout the past couple of years, believes Tesla’s performance in 2021 showed a robust determination to navigate parts and chip shortages, vowing not to let the bottlenecks, which may cause some large automakers to report negative figures compared to last year, affect its production figures in the same fashion. Tesla routinely updated investors and enthusiasts on its ability to deter itself from chip shortages regularly, including a groundbreaking announcement during the Q2 2021 Earnings Call, where the automaker had designed, developed, and validated a series of 19 variants of controllers. This effort from Tesla engineers helped the automaker avoid and mitigate large-scale disruptions in its production and delivery process.
Tesla did this better than any other automaker, Ives said in a Tweet from Monday. The story of 2021 was likely based on this effort alone, which was monumental and could have caused serious problems for some companies, especially those without substantial cash on hand.
Looking forward to 2022, Ives sees Tesla’s impressive performance continuing, listing three main factors in the automaker’s quest to continue its meteoric rise up the ranks of global automotive companies. While Tesla leads every car company on Earth in valuation, the next goal in the company’s sights must be to increase its production and delivery numbers on an annual basis, inching closer to the one million vehicle annual run rate.
Giga Berlin and Giga Texas
Ives lists Tesla’s two new manufacturing facilities as the first point in the company’s quest for a monumental 2022. Gigafactory Berlin and Gigafactory Texas were set to open in 2021. However, delays due to the pandemic and other political issues in Germany have derailed the start of either of these facilities during this year, which is not necessarily a bad thing. Tesla will come out in 2022, firing on all cylinders. Two new production facilities will launch with massive implications for the company’s growth forecast, as they will both contribute to Tesla’s consistently growing run rate. With these two factories sufficiently ramped in 2022 by Q2 or Q3, if all goes according to plan, Tesla could come close to doubling its current output in 2021 for 2022.
China “Mega-Growth”
China has proven to be one of Tesla’s most successful markets, and Ives believes the increasing run rates out of Gigafactory Shanghai will continue to surge more growth into the company. There is no doubt that Tesla has continued to be a substantial force in China, despite robust competition and a somewhat coordinated media attack on the company’s products. However, it has not stopped Tesla from performing exceptionally well in the sector. Tesla has delivered over 50,000 vehicles per month in China for the past two months. Some monthly figures, which are confirmed by the Chinese Passenger Car Association, are lower than others due to Tesla’s strategy to export vehicles from China to Europe, where Giga Berlin is waiting for approval to begin operation.
Tesla Giga Shanghai shows off its Model 3 production efficiency in recent video
Unit growth fueled by new facilities and increased demand
Ives is forecasting a unit growth of 55 or 60 percent for Tesla in 2022, which can mostly be attributed to the new factories in Texas and Berlin. This could perhaps be Tesla’s key, along with more efficient battery cells, to an even higher stock price and valuation. However, even more, Tesla’s increased production rates could put the company on par with some of the more large-scale car companies, especially if it can cross the one million vehicle production rate annually, which should be easy considering the projected output after ramping production lines at Berlin and Texas.
Ives reiterated his $1,400 price target and the “Outperform” rating he held on Tesla stock. Ives is ranked 22nd out of 7,756 analysts on TipRanks. He also holds a 76% success rate and an average return of 36.4%.
Disclosure: Joey Klender is a TSLA Shareholder.
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News
Tesla puts Giga Berlin in Plaid Mode with new massive investment
The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.
Tesla is pushing forward with significant upgrades at its Gigafactory Berlin-Brandenburg in Grünheide, Germany, signaling renewed confidence in its European operations despite past market challenges.
The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.
In April, plant manager André Thierig announced a 20 percent increase in Model Y production starting in July, following a record Q1 output of more than 61,000 vehicles. To support the ramp-up, Tesla plans to hire approximately 1,000 new employees beginning in May and convert 500 temporary workers to permanent positions.
The move is expected to lift weekly production significantly, addressing rebounding demand in Europe after a challenging 2025.
Today, we announced a $ 250m investment for our Giga Berlin Cell factory. This will enable 18GWh of annual 4680 cell production and create more than 1500 new jobs. Good news during challenging times for the German industry. pic.twitter.com/ou4SWMfWh9
— André Thierig (@AndrThie) May 12, 2026
The expansion builds on earlier progress. In 2025, Tesla secured partial approvals to add roughly 2 million square feet of factory space, raising potential annual vehicle capacity from around 500,000 toward 800,000 units, with longer-term ambitions approaching one million vehicles per year. Logistical improvements, new infrastructure, and battery-related facilities are already underway on company-owned land.
Battery production is the latest major focus. On May 12, Thierig revealed an additional $250 million investment in the on-site cell factory. This more than doubles the planned 4680 battery cell capacity to 18 gigawatt-hours annually—up from the 8 GWh target set in December 2025—while creating over 1,500 new battery-related jobs.
Total cell investments at the site now exceed previous figures, bringing the factory closer to full vertical integration: cells, packs, and vehicles produced under one roof. Tesla describes this as unique in Europe and a step toward stronger supply chain resilience.
The plans come amid regulatory and community hurdles. Earlier expansion proposals faced protests over environmental concerns and water usage, leading to phased approvals beginning in 2024. Tesla has navigated these by emphasizing sustainable practices and economic benefits, including thousands of local jobs in Brandenburg.
With nearly 12,000 employees already on site and production steadily climbing, Gigafactory Berlin is poised for growth. The combined vehicle and battery expansions position the plant as a key hub for Tesla’s European ambitions, potentially making it one of the continent’s largest manufacturing complexes if local support continues.
As EV demand recovers, these investments underscore Tesla’s commitment to scaling efficiently in Germany while addressing regional supply chain needs.
News
Honda gives up on all-EV future: ‘Not realistic’
Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.
Honda has given up on a previous plan to completely changeover to EVs by 2040, a new report states. The company’s CEO, Toshihiro Mibe, said that the idea is “not realistic.”
Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.
Mibe said (via Motor1):
“Because of the uncertainty in the business environment and also the customer demand, is changing beyond our expectation and, therefore, we have judged that it’ll be difficult to achieve. That ratio [100-percent electric in 2040] is not realistic as of now. We have withdrawn this target.”
Instead of going all-electric, Honda still wants to oblige by its hopes to be net carbon neutral by 2050. It will do this by focusing on those popular hybrid powertrains, planning to launch 15 of them by March 2030.
Honda will invest 4.4 trillion yen, or almost $28 billion, to build hybrid powertrains built around four and six-cylinder gas engines.
There are so many companies abandoning their all-electric ambitions or even slowing their roll on building them so quickly. Ford, General Motors, Mercedes, and Nissan have all retreated from aggressive EV targets by either cancelling, delaying, or pausing the development of electric models.
Hyundai’s 2030 targets rely on mixed offerings of electric, hybrid & hydrogen vehicles
Early-decade pledges from multiple brands proved overly ambitious as infrastructure lags, battery costs remain high in some markets, and many buyers prefer hybrids for their convenience and range. Toyota has long championed hybrids, while others have quietly extended internal-combustion timelines.
For Honda—historically known for reliable gasoline engines—this shift leverages its core strengths while buying time to refine electric technology. Whether the hybrid-heavy strategy will protect market share in an increasingly competitive landscape remains to be seen, but one thing is clear: the gas engine is far from dead at Honda, unfortunately.
Elon Musk
Delta Airlines rejects Starlink, and the reason will probably shock you
In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.
SpaceX frontman Elon Musk explained on Wednesday why commercial airline Delta got cold feet over offering Starlink for stable internet on its flights — and the reason will probably shock you.
In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.
Delta rejected Starlink because it insisted on routing all connectivity through its branded “Delta Sync” portal rather than allowing a simple Starlink experience.
Instead, the airline partnered with Amazon’s Project Kuiper—rebranded as Amazon Leo—for high-speed Wi-Fi on up to 500 aircraft, with rollout targeted for 2028. At the time of the announcement, Kuiper had roughly 300 satellites in orbit, while Starlink operated more than 10,400.
The use of the “Delta Sync” portal would not work for SpaceX, as Musk went on to say that:
“SpaceX requires that there be no annoying ‘portal’ to use Starlink. Starlink WiFi must just work effortlessly every time, as though you were at home. Delta wanted to make it painful, difficult and expensive for their customers. Hard to see how that is a winning strategy.”
Musk doubled down in a follow-up post:
“Yes, SpaceX deliberately accepted lower revenue deals with airlines in exchange for making Starlink super easy to use and available to all passengers.”
Not exactly. SpaceX requires that there be no annoying “portal” to use Starlink.
Starlink WiFi must just work effortlessly every time, as though you were at home.
Delta wanted to make it painful, difficult and expensive for their customers. Hard to see how that is a winning…
— Elon Musk (@elonmusk) May 13, 2026
SpaceX has structured its airline agreements to prioritize zero-friction access—no captive portals, no SkyMiles logins, no paywalls or ads blocking basic connectivity.
While this means forgoing higher-margin deals that would let carriers monetize the service more aggressively, it ensures Starlink feels like home broadband at 35,000 feet. Passengers on partner airlines such as United, Qatar Airways, and Air France have already praised the service for enabling seamless video calls, streaming, and work mid-flight without interruptions.
Delta’s choice reflects a different philosophy. By keeping Wi-Fi behind its Delta Sync ecosystem, the airline aims to drive loyalty program engagement and control the digital passenger journey. Yet, critics argue this short-term control comes at the expense of immediate competitiveness.
Airlines already installing Starlink are pulling ahead in customer satisfaction surveys, while Delta passengers face years of reliance on slower, legacy systems until Leo launches.
SpaceX’s decision to trade revenue for simplicity will pay off in the longer term, as Starlink is already positioning itself as the default high-speed option for carriers that value passenger satisfaction over incremental fees.
Musk’s focus on creating not only a great service but also a reasonable user experience highlights SpaceX’s prowess with Starlink as it continues to expand across new partners and regions.
Tesla puts Giga Berlin in Plaid Mode with new massive investment
Honda gives up on all-EV future: ‘Not realistic’
