Investment banking company Piper Jaffray this week increased their price target for Tesla (TSLA) from $372 to $423. Piper Jaffray analyst Alexander Potter commented in his note on Monday that “for all its controversy and volatility, we think TSLA is a must-own stock in the auto sector.”
Tesla shares rose 0.40% on Tuesday after the note was released, closing at $336.20. In his note, Potter surmises that Tesla’s recent performance showcasing impressive capabilities like high-volume manufacturing, opex control, and reduced spending all point to sign of positive growth for the stock.
Despite what many have said of Tesla’s Cybertruck, Potter is also positive on Tesla’s newest creation. Like many, he was skeptical of the truck’s design, but after some time had passed he came to realize that “ALL OTHER pickup trucks might actually be pretty crummy, and Tesla’s Cybertruck is the only [one] worth ordering.”
Potter also predicts in his note that by 2023, with Cybertruck production well underway, Tesla could easily sell 200,000 units annually. Based on early reservations for the Cybertruck, where 1 reservation was placed every 2 seconds in the first two weeks after the unveiling, that number definitely appears to be achievable.