Many analysts are bullish on Tesla, and with recent production upgrades and an uphill challenge for most of the automaker’s competitors, one firm recently doubled down on its long-term expectations for the stock.
Goldman Sachs analyst Mark Delaney reiterated a Buy rating on Tesla’s stock on Wednesday, adding that the company “well-positioned” for an upcoming shift to EVs (via Yahoo Finance).
Delaney shared a price target of $333.33 on Tesla’s stock, as well as an assumed stock price growth of 22 percent. He cites lowered costs, benefits from the Inflation Reduction Act and industry-wide supply bottlenecks as reasons why Tesla is a big buy right now.
Tesla Has Produced 3 Million Cars; 3-for-1 Stock Split Approved https://t.co/p7X6epyOEv
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“We believe that Tesla, given its leadership position in EVs (including its vertical integration and tight coupling of hardware and software, as well as its ecosystem of charging stations and brand), and its focus on clean transportation more broadly (given its solar and storage businesses) is well positioned to capitalize on the long-term shift to EVs,” said Delaney. “We expect Tesla to expand margins in the intermediate term as it ramps the important Model Y product as well as new factories in Berlin, Germany and Austin, Texas, and in the long-term as it increases its mix of software revenue.”
Goldman Sachs and its analysts have remained bulls since before Tesla’s recent 3-for-1 stock split. Delaney even held a Tesla price target of $1,200 as far back as eight months ago before shares were split.
