Tesla’s gravity-defying rally, so by 2020 it is expected to continue, according to a memo from piper Sandler released Monday.
The company more than doubled its target of past value from $939 to $2322, the highest on Wall Street, a 55% increase since Monday’s close.
So investors call the record and make a profit from Tesla after it’s increased by 328% since the start of the year? According to Sandler, “outright, we believe the answer is NO.”
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“It’s hard to see how the competition can catch up,” Sandler said, adding that Tesla’s fabric capability is its biggest constraint on percentage over profits. The company said Tesla might be able to deliver more than 500,000 cars by 2020, which would be “impressive” given the closure of the transient plant caused by the COVID-19 pandemic.
And Tesla can deliver only about four million cars by 2025, capturing only about 10% of the share of the U.S. market, Piper Sandler said.
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Risks to Piper’s bull thesis include production delays, failure to meet customer expectations, product defects and recalls, supply chain disruptions, and the slow adoption of electric cars.
In response to the note, Elon Musk tweeted on Monday night, “Wow.”
If shares of Tesla continue to remain elevated, Musk could receive a $2.4 billion payout. Shares of Tesla have surged on stronger-than-expected second quarter delivery data and speculation that the company may be eligible for inclusion into the S&P 500 index once it reports earnings later this month.
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