Tesla (TSLA) Price Target Raised at Credit Suisse, Analyst Names 4 Catalysts for 2022

January 18, 2022 5:43 AM EST
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Credit Suisse analyst Dan Levy raised the price target on the Neutral-rated Tesla (NASDAQ: TSLA) stock to $1,025 from $830 to reflect the upgraded model.

Levy increased 2030 volume and gross margins to now expect 7.1 million units of volume in 2030 vs. prior 6.3 million. At this number, Tesla is estimated to become the 6th largest carmaker in the world by 2030. The higher price target also reflects an increased 2022 EPS estimate to $12.66, up from $8.34.

“We believe favorable fundamentals can continue to support Tesla stock. Yet non-fundamental factors will also need to remain supportive–i.e. Tesla’s trading multiple will need to remain lofty...not only will Tesla need to remain strong in the face of potentially higher rates, but with a $1tn+ market cap Tesla will now need greater market cap accumulation to drive further increases in the stock,” Levy said in a client note.

The analyst outlined 4 catalysts that could help Tesla stock to trade higher this year. These are: 1) Capacity expansion, 2) Gross margin, 3) Updated product roadmap, and 4) Batteries.

As far as the capacity is concerned, Levy sees “demand exceeding supply likely for the foreseeable future.”

“Tesla’s path of volume will be purely a function of its production; we expect Tesla to maintain EV leadership given its holistic approach on supply. We forecast 2022 Tesla deliveries of 1.47mn units, +57% y/y, primarily driven by Shanghai growth.”

Tesla stock price is down over 2.5% in pre-open Tuesday.

By Senad Karaahmetovic | [email protected]

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