What happened

Shares of Tesla (NASDAQ: TSLA) rose 3.9% on Wednesday following positive analyst remarks.

So what

New Street analyst Pierre Ferragu believes the electric vehicle (EV) maker's investors are in store for sizable rewards. He expects Tesla's stock price to soar more than 40% to $1,580 per share in the year ahead, fueled by production increases and improving profitability.

Ferragu says Tesla's new manufacturing facilities in Texas and Berlin will help it ramp its production to an annual rate of 1.8 million vehicles by the end of this year. He also predicts that Tesla's operational improvements will allow it to generate $0.30 of gross profit for every $1 in sales in 2022.

Image source: Getty Images.

Wedbush analyst Dan Ives also had positive things to say about Tesla. He expects the EV leader to continue to drive the auto market's growth in the coming years.

The shift from gas-powered to electric vehicles represents "the biggest transformation to the auto industry since the 1950s," according to Ives. "It's a $5 trillion market opportunity," he said during an interview with Yahoo Finance.

Like Ferragu, Ives expects Tesla's new plants to quickly boost the number of EVs it can supply to eager customers. This rapid rise in the company's manufacturing capabilities combined with booming demand for its vehicles in markets like China and the U.S. should fuel additional gains in Tesla's sales and profits, according to Ives. In turn, he sees Tesla's share price climbing roughly 27% to $1,400.

Now what

Tesla is facing intensifying competition from the likes of Ford, GM, and Lucid as well as a host of Chinese automakers. However, the EV market represents a massive growth opportunity for Tesla and its rivals. There's likely to be more than one winner in this booming industry, and Tesla is well positioned to be one of them.

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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns and recommends Tesla. The Motley Fool has a disclosure policy.