Tesla’s Price Target Boosted at Piper Sandler

Piper Sandler analysts raised the price target for Tesla (NASDAQ:TSLA) to $310 from $300, while maintaining an Overweight rating on the stock.

The analysts explained the decision follows a review of Tesla's intra-quarter sales data, leading to increased vehicle delivery estimates for Q3 and full-year 2024. The analysts now expect Tesla to deliver nearly 459,000 vehicles in Q3, representing 3.3% quarter-over-quarter and 5.4% year-over-year growth. For 2024, total deliveries are forecast at approximately 1.75 million units, an increase of around 23,500 units from previous estimates.

The analysts noted that Tesla's performance in China is set to make Q3 the company's best quarter in the region to date, while Cybertruck deliveries are boosting demand in the U.S. despite weaker sales in Europe. The price target increase also reflects a lower weighted average cost of capital (WACC) of 13.3%, down from 13.5%, due to declining treasury yields.