Following another record quarter that blew away all consensus estimates, Morgan Stanley has raised their price target for Tesla (TSLA) shares to $1,300.
In a message to investors on Monday, analyst Adam Jonas said his firm was among those who severely underestimated Tesla’s Q4 2021 deliveries, which ended up being 20% above their forecast.
Tesla’s 308,600 deliveries around the world equates to an annualized rate of over 1.2 million vehicles, a figure that is already above Jonas’ forecast for 2022.
As a result, Jonas raised their Tesla (TSLA) price target from $1,200 to $1,300 while maintaining an overweight rating.
Jonas added that Tesla is far ahead of the pack when it comes to competition from legacy automakers.
“We believe there are signs that the industry leader is accelerating its lead over its EV peers, which should not be construed as a positive for the broader sector.”
“Think of the EV race as a marathon. Tesla is in the lead at mile number 21. Everybody else is at mile 2 or still tying their shoes.”
With the new price target, Morgan Stanley has raised their 2022 delivery estimate from 1.22 million to 1.46 million.
Disclaimer: Darryn is a TSLA shareholder and has no plans to change positions within 72 hours.