Tesla (NASDAQ: TSLA) Shares are increasing in premarket trading, at least in part due to reports from the company. He has met with officials from the Chinese city of Chongqing that could lead to further cooperation in the sales and maintenance centers, but the actions also have the attention of Wall Street.
“Wow” was CEO Elon Musk’s latest response to Piper Sandler’s doubling of its target price at the electric vehicle maker to $ 2,322 from $ 939.
“Is it time to redeploy capital” after the last execution of the action? “NO,” says analyst Alexander Potter, raising his delivery estimates after Q2 numbers. It also notes that the 500K + 2020 delivery estimate may “still be at stake.”
Piper updates delivery estimates in 2025 to reach 4 million units, and says that while deliveries are important, it is the operating margin and software that the analyst hopes to drive value. Full self-driving, FSD, and underwriting plans should help the automaker reach 20% operating margins by the end of the 20-year forecast period. Even if the co. Sells the car at or below cost in 2030, the underwriting plan could generate higher margins for the company, Potter added.
