Piper Sandler Raises Estimates on Tesla (TSLA) Ahead of 'Best-Ever Quarter' in Q3

September 28, 2021 7:26 AM EDT
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Piper Sandler analyst Alexander Potter raised estimates on Tesla (NASDAQ: TSLA) and reiterated an Overweight rating and a $1,200.00 per share price target after conducting a quarterly review of worldwide electric vehicle (EV) sales.

The analyst said Tesla is poised to report “the best-ever quarter” in Q3 after the conducted analysis forced the analyst to raised 2021 delivery estimates to 894k from the prior 846k. For Q3, Potter estimates 233k deliveries amid reports of strong production.

“People often focus on deliveries, but this metric probably gets too much airtime. We are more interested in margins, which we think could be particularly strong in Q3,” Potter said in a client note.

On wider EV trends, the analyst commented:

“China's world-leading EV penetration is still driven by Tesla and by local brands. Top-selling EV brands in China include Wuling, Tesla, BYD, Ora, Trumpchi, Nio, Xpen. But in Europe, several mainstream brands are contributing (especially VW). In China and the U.S., some high-profile EV launches have underwhelmed, but the frequency of serious EV launches will increase in 2022-2024,” Potter added.

Shares of Tesla are down 1.5% in pre-open Tuesday.

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