Electric automaker Tesla could have about 40 percent of its sales attributed to the Chinese market by 2022, according to a new note from Wedbush Securities analyst Dan Ives on Sunday.

Ives, who handles Tesla's evaluation, believes Tesla is poised for a possible 71 percent spike in stock price from $2,500 to $3,500, with China the key for its stock price increase.

"We believe the production and demand trajectory in China for Tesla remains robust and stronger than expected for Q3 with clear momentum heading into the year-end," Ives said in the note, according to a report from news portal Teslarati.

"With the China growth story, Tesla could now have $35+ of earnings power by 2025/2026 versus our prior estimate of $20-$25," Ives also said in the note.

Wedbush said Tesla could have about 40 percent of its sales attributed to the Chinese market, which depends whether the company can keep up with demand from the world's largest automotive market.

Pent-up demand for the Model 3 in China and recent price cuts have created "a perfect storm of demand" for Tesla to capitalize on, Wedbush said, according to a report from Business Insider.

Wedbush also said Tesla is "back on track" to deliver 500,000 cars this year despite the COVID-19 pandemic, and it could ultimately deliver 1 million units per year by 2023.