Increased Tesla Model Y Wait Times Signal Bullish Market, Says Analyst

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.