Throughout the course of 2020, Tesla’s stock expierneced an incredible and record breaking surge. Where most other automakers saw a drop in sales caused by the current global pandemic, analysts have continued to up the California-based automaker’s price target with expectations of an even brighter future for the automaker. With these new all-time highs, the automaker’s valuation rose to over $800 billion.
Last month Morgan Stanley analyst Adam Jonas said in a note to clients that he increased the firm’s price target on the stock to $810. Shortly after analyst Dan Ive of Wedbush topped Jonas’ price target by raising his own to $950 just a week later. Again, that price was quickly beaten when Oppenheimer analyst Colin Rusch dropped a new price target of $1,036 per share.
Now, it appears that Piper Sandler analyst Alexander Potter has seen the light and has reevaluated his position on Tesla’s stock by more than doubling his price target to a new Wall Street-high of $1,200. According to Potter’s new note to clients, he recommends not taking profit on TSLA, but to look at all the different industries Tesla is targeting: “To defend our new price target of $1,200, we are publishing a 100+ page report entitled “The Definitive Guide to Investing in Tesla.” While it is more exhaustive than anything we have published to date, even our expanded model does not capture all potential revenue streams. Indeed, with Tesla’s target industries still embracing outdated business models, it may be decades before this company runs out of new opportunities to pursue.”
According to Potter’s report: “There will always be new levers for growth. Some may scoff at our generous assumptions re: TSLA’s long-term potential, but consider this: our model does not contemplate Tesla’s eventual entry into the HVAC or auto insurance markets, both of which represent hundreds of billions in market-wide revenue. Our forecast of peak vehicle production (9M units/year) is also materially below Tesla’s own ambitions, based on capacity plans outlined at Battery Day. Plus we could be under-modeling Tesla’s solar revenue, as well as “Autobidder” and other opportunities in the Energy segment (these businesses are still nascent).”
The analyst seems to be falling in line with the notion that Tesla is more than just a car company. Furthermore, Potter predicted that Tesla will be able to deliver 894,000 vehicles in 2021 which he acknowledged is far below Tesla’s own projections.