Piper Sandler's outlook for Tesla is quite upbeat, with analyst Alexander Potter reiterating their positive stance and a price target of $295 per share. Potter's recent remarks highlight the firm's anticipation of Tesla achieving its ambitious 2023 vehicle delivery target. The analyst specifically mentioned an expected 507,000 vehicle deliveries for Q4, projecting a substantial full-year total of around 1.83 million cars. Potter acknowledged that while their forecast might be towards the more optimistic end, it remains within a plausible range considering the latest available data.
Potter emphasized that even if Piper Sandler's estimate leans towards the optimistic side, Tesla is poised to achieve record-breaking numbers in Q4. The firm remains optimistic about the company's margins, expecting potential improvements compared to Q3 due to consistent vehicle pricing throughout the quarter, which could lead to enhanced fixed cost leverage.
"Even in a scenario where our estimate appears overly optimistic, Q4 still appears set to mark a new milestone, likely surpassing an annualized production rate of 2 million vehicles. We foresee an uptick in margins compared to Q3, attributed to steady pricing and improved efficiency in fixed cost management. A reassessment of our margin forecast will follow the release of Q4 delivery results," noted the analyst.
To meet its target of delivering 1.8 million vehicles in 2023, Tesla needs to deliver approximately 476,000 cars in Q4. This goal appears within reach, especially considering the smooth production increase of the Model 3 in China and the robust global sales of the Model Y.
----------The article is excerpted from TESLARATI