Tesla (TSLA) beat analysts’ expectations when it reported earnings Monday afternoon, posting a profit of $1.1 billion and making a record-setting number of deliveries for the quarter. But one analyst told Yahoo Finance that the electric car company still has more room to grow next year.

Deutsche Bank Lead Tech and Auto Technology Analyst Emmanuel Rosner noted that Tesla worked relentlessly to cut the costs of its vehicles and to offer cutting-edge battery technology.

“We truly think this is about their low cost. This is about the superiority in battery technology, and it seems like there’s quite a bit more to come in 2022,” Rosner told Yahoo Finance Live on Tuesday.

Tesla’s adjusted earnings per share, $1.45, more than tripled in Q2 versus the same quarter last year and easily beat analysts’ expectations of $0.97. Total revenue was reported to be $11.96 billion, surpassing expectations of $11.30 billion as well.

Tesla has undergone production woes as of late, partially because of the global semiconductor chip shortage and problems with battery production. However, recent focus given to improving productive capabilities may help increase the company’s production in the long run, Rosner said.

“Tesla has done a spectacular job in the second quarter in a very, very challenging supply chain environment to actually produce as much as they possibly can, almost maximizing capacity utilization,” Rosner said. “This has probably been one of the toughest quarters, from a supply chain [perspective], especially [with regard to] semiconductors.”