Tesla Motors, Inc. (NASDAQ: TSLA) – Tesla Secures $ 1,200 Price Target: “ The Fireworks Ain’t Over Yet ”

Tesla Inc (NASDAQ: TSLA) got a massive increase in the price target from Piper Sandler, the company dissuading investors from selling the stock.

Tesla analyst: Alexander Potter is overweight Tesla stocks, and he took the price target from $ 515 to $ 1,200, a street top.

The Tesla thesis: Tesla is now a component of the S&P 500 Index and many of the issues that plagued the company have now been resolved, Potter said in a note. V The stock cannot be overlooked now and any downside catalyst materializing will face enthusiastic buying, the analyst said. .

See also: How to invest in Tesla stock

Piper Sandler now projects deliveries of 894,000 vehicles in 2021, with sales potentially reaching over 9 million vehicles in 2030.

Related Link: Tesla Reports Record Quarterly Revenue of $ 10.74 Billion, Semi-deliveries to Begin This Year

More importantly, there will likely be a steady ramp in full adoption of stand-alone software starting in 2030. This, according to the analyst, is expected to have a big impact on margins, with the EBIT margin ultimately exceeding 40%.

Tesla Energy will likely grow from around 6% of its current revenue to around 20-30% by 2030, Potter estimates.

Tesla is targeting multi-trillion dollar markets and there will always be new levers for growth, the analyst said. The company could eventually enter the HVAC or auto insurance markets, both of which represent hundreds of billions of dollars in market-wide revenue, he added.

“2020 has been a landmark year for TSLA, but in our opinion, the fireworks are not over,” Potter said.

Even after yielding 10 times the return in the past 12 months, investors should not sell this stock, the analyst said.

TSLA Price Action: At the last check, Tesla shares were up 4.1% to $ 826.45.