Tesla (TSLA) PT Lowered to $300 at Piper Sandler

Piper Sandler analyst Alexander Potter lowered the price target on Tesla (NASDAQ: TSLA) to $300.00 (from $340.00) while maintaining a Overweight rating.

The analyst comments "We are updating our model in preparation for earnings on January 25th. Tesla took longer than expected to cut prices, but now that pricing adjustments have been made, and now that the valuation has reset, we think investors should be proactively buying TSLA. Three points warrant particular attention, in our opinion. First, we think Tesla can easily achieve 50%+ delivery growth in 2023 (in the U.S. alone, price cuts and a $7,500 tax credit could boost demand by 300k-600k units). Second, while we are cutting our gross margin forecast to reflect lower pricing, we wouldn't be shocked if margins surprise to the upside in 2023. And finally, we think the self-driving software business is "free" at this valuation."

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