Shanghai Gigafactory photo courtesy of Tesla.

Wedbush Securities has issued another bullish report on electric vehicles and Tesla Inc. (TSLA).

Growth Markets

The report makes the case for believing heavy growth is to come from Europe, the U.S., and especially China. Europe is more determined than ever to cut emissions. The incoming administration of U.S. President-elect Joe Biden wants to make inroads in combating climate change. Wedbush says tax credits and other incentives are likely on the way.

And demand in mainland China remains high. Wedbush predicts a doubling of EV sales there in the next few years and says that will greatly benefit Tesla. "We believe China could represent up to 40% of overall deliveries for the EV leader Tesla in 2022," the Wedbush report says, pointing to Tesla's factory in Shanghai as a competitive advantage. The report also notes that domestic players BYD Ord Shs H (BYDDF), Nio Inc. (NIO), Xpeng Inc. (XPEV), and Li Auto Inc. (LI) are also "firing on all cylinders."

Charging Ahead

The report comes as Tesla has announced it is investing $6.4 million to build a new charging-station factory in China.

Latest Ratings for TSLA