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Piper Sandler analyst Alexander Potter defended his bullish thesis on Tesla (NASDAQ:TSLA), advising clients that recent selling pressure does not impact the company’s longer-term trajectory.
Potter acknowledged that Tesla (TSLA) stock has been “in a tailspin over the past few weeks,” as both bears and tax-loss sellers foment downside pressure on a consistently negative newsflow. He also acknowledged that Elon Musk’s Twitter (TWTR) situation and rapidly-shifting pandemic policies and outbreaks in China add uncertainty into 2023.
“We do acknowledge that growth could easily slow in 2023, due (among other things) to a recession, rising interest rates, and tapped-out demand in segments addressed by Tesla’s current product portfolio,” Potter wrote. “But we do NOT believe Tesla’s market share is suddenly succumbing to a wave of new competition, and we do NOT believe anything has changed with the long-term thesis.”
Potter reiterated a Buy-equivalent rating on the stock and set a $340 price target for the stock, suggesting it could nearly triple.
Shares of the Austin-based automaker opened down 0.59% on the final trading day of 2022. The projected year-to-date loss of over 60% will be the steepest on record for the Elon Musk-led company.
Read more on Guggenheim’s more cautious take on Friday.
Image and article originally from seekingalpha.com. Read the original article here.