Alexander Potter from Wall Street firm Piper Sandler, has noted a positive trend in the increased wait times for Tesla’s Model Y vehicles. This shift could indicate a bullish market outlook for the electronic vehicle (EV) maker, with a potential 65% rally on the horizon.
The Model Y, which accounts for approximately 15% of Tesla’s total deliveries, has seen a lengthening in its delivery times for U.S. buyers. Potter interprets this change as a promising sign. “We anticipate the market will view this uptick favorably,” he stated in a recent note (via CNBC).
Tesla, which had reduced prices on its vehicles multiple times this year, including a 20% drop on the base Model Y sticker price, had recently increased the model’s price by $250. This move occurs amidst a broader context of stricter U.S. federal tax credit standards for EVs.
Increased wait times could suggest a surge in demand for Tesla’s vehicles. However, Potter cautions that these times do not solely reflect consumer interest in Tesla over other brands. “Wait times are a complex metric, reflecting not only the appetite for Tesla vehicles but also the company’s production rate and the general demand for all types of cars,” Potter explained.
Potter’s forecast of a $280 price target for Tesla shares represents a significant 65% increase from Tuesday’s closing figures. As of now, Tesla shares have already seen a 37% rise since the start of the year.
Tesla recently reached a Model Y milestone at its Gigafactory in Austin, Texas, producing 5,000 of the compact crossovers in one week, which works out to about 250,000 cars produced annually.
You can’t make this stuff up! quoted from above “The Model Y, which accounts for approximately 15% of Tesla’s total deliveries”.
15%!!! Really? More like 75%. try again. You guys are supposed to be clued in about Tesla. I’m very dissapointed.