Tesla Gets $1,300 Price Target by Piper Sandler, Highest on Wall Street

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With Tesla’s market capitalization hitting $1 trillion USD earlier this week, some analysts are only growing more bullish, anticipating a gradual, continued increase into higher stock prices.

Piper Sandler analyst Alex Potter increased his price target on Tesla to $1,300 from $1,200 on Wednesday, marking the highest price target for Tesla on Wall Street, according to The Street.

While many analysts are currently focused on Tesla’s Hertz deal, Potter explains in a note, the firm believes three features of Tesla’s current position are being overlooked:

• “Tesla Killer” EVs that have been unveiled have not “killed Tesla” and have largely underperformed.
• Tesla’s warranty performance has been strong as of late.
• Margin weaknesses for the company could easily be offset by deferred revenue.

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— TeslaNorth.com (@RealTeslaNorth) October 28, 2021

In the note and explaining the change in Tesla’s price target, Potter writes, “We now expect Tesla’s sales volume to max out around 11.5 million units in 2030, which likely implies a number one ranking in terms of worldwide market share.”

Potter continued, “We also nudged our gross margin expectation higher, citing recent strength. We note that several potential upside levers are still excluded from our forecast, including revenue related to insurance, HVAC, ‘AI-as-a-service’, and software in the Energy segment.”

At the time of writing, Tesla shares are trading at $1,075.73 (+37.87), up 3.65 percent from Thursday’s market open.