Piper Sandler analyst Alexander Potter reiterated its $340 price target and Overweight rating on Tesla’s stock in a note on Thursday, adding that recent stock issues don’t change the firm’s long-term view of the company’s shares (via @Tesla New York).
In the note, Potter wrote that the firm does “not believe anything has changed with the long-term thesis.”
Although Tesla’s shares were up 9 percent during trading hours on Thursday, they have also fallen by over 50 percent in the last three months.
“TSLA has been in a tailspin over the past few weeks with bearishly-inclined traders and/or tax-loss sellers pouncing on every bit of incrementally negative news,” Potter wrote. “And of course, the Twitter situation and China’s COVID outbreak haven’t helped matters.”
Musk to Tesla Employees: Don’t Be ‘Bothered By Stock Market Craziness’ https://t.co/9IXRX1zGUZ
— TeslaNorth.com (@RealTeslaNorth) December 29, 2022
While Potter did point out expectations of slowed growth in 2023 due to rising interest rates, an economic recession and cooling demand, he emphasized that the firm doesn’t expect competition to affect Tesla’s long-term outlook.
“But we do NOT believe that Tesla’s market share is suddenly succumbing to a wave of new competition, and we do NOT believe anything has changed with the long-term thesis,” Potter added.
Despite Tesla being nearly $720 billion down on the year, many investors are buying the dip, and one analyst from CFRA even called the low share price a “good buying opportunity” earlier this week.
