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)
- “Tesla Killer” EV launches from other brands have generally fallen flat.
- Tesla’s recent warranty performance has been strikingly good.
- 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.
Disclosure – Darryn holds shares of Tesla, Inc. (TSLA) and has no plans to change any positions within 72 hours.