Tesla (TSLA) gets new street-high price target from Piper Sandler

TSLA

Just a few days after Tesla (TSLA) shares skyrocketed above $1,000 to new all-time highs, Piper Sandler has updated their outlook on the automaker.

In the firm’s update posted yesterday, analyst Alex Potter set the new watermark for Wall Street by issuing a price target of $1,300.

Potter noted three main reasons for the fresh outlook, which was an increase of $100 from their previous price target of $1,200. (via TheStreet)

  1. “Tesla Killer” EV launches from other brands have generally fallen flat.
  2. Tesla’s recent warranty performance has been strikingly good.
  3. Deferred revenue could help offset margin weakness.

The analyst also said the automaker could recognize some deferred Full Self-Driving (FSD) revenue to reduce the effect of margin reductions as a result of Giga Berlin and Giga Texas ramping up production next year.

As for their sales projection, Potter now expects Tesla to reach annual sales of $11.5M by 2030. At that rate Tesla would hold on to their status as worldwide EV market share leader.

Tesla receives $1200 price target by Piper Sandler

 

Disclosure – Darryn holds shares of Tesla, Inc. (TSLA) and has no plans to change any positions within 72 hours.

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Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca