Argus analyst Bill Selesky released a new note on Tesla reiterating the firm’s Buy rating on the shares and adjusting the price target to $374 following the stock split.
Selesky expects the automaker to report “strong revenue and higher automotive gross margins” in the rest of 2022 “setting the stage for further earnings growth”.
The analyst commented, “We are reaffirming our BUY rating on Tesla Inc. (NGS: TSLA) with a split-adjusted price target of $374. We see Tesla as the undisputed leader in the electric vehicle (EV) industry despite growing competition, with its Model S, Model 3, Model X, Model Y, and upcoming Cybertruck and Semi truck offerings”.
“Tesla ranked No. 1 in EV sales in 2019, 2020, and 2021, and has both industry-leading technology and manufacturing capabilities and unparalleled brand recognition. The company reported stronger-than-expected 2Q22 results as strong deliveries more than offset the impact of the semiconductor shortage and other supply-chain disruptions including the shutdown of the company’s Shanghai factory in April,” the analyst added.
“We expect Tesla to report strong revenue and higher automotive gross margins over the remainder of the year, setting the stage for further earnings growth. We also like the company’s plan to open its Supercharger Network to non-Tesla vehicles, which should be an important new source of revenue. We note that the Supercharger Network is the largest fast-charging network in the world, with 3,971 Supercharger’s in operation at the end of 2Q, up 34% from the prior year.
Last week, Tesla CEO Elon Musk said on Sunday the automaker will increase the price of its FSD technology from $12,000 to $15,000 from September 5th in North America, representing an increase of 25%.