Tesla Stock a "Flagship Holding" Says Analyst

Wall Street's biggest bull comments after Tesla's Q1 delivery report.
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Tesla stock looks set to rise on Monday following the company’s Q1 delivery beat. In premarket hours, one of Wall St.’s biggest TSLA bulls chimed in.

Alex Potter of Piper Sandler holds the highest price target on TSLA at $1,200 per share, more than 60% above today’s levels.

“On Friday Tesla reported Q1 deliveries of 184,800 units, exceeding consensus by over 10k units. Tesla apparently sidestepped the semiconductor shortages, battery bottlenecks, and shipping delays that plagued many other automakers during Q1. The result was especially impressive because the Model S/X production line was shut down for almost the entire quarter, due to a long-awaited ‘refresh’ for these flagship models. Without this impact, deliveries would have been higher still, likely by 15k+ vehicles,” Potter wrote in a new note.

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Still, Potter was not quite ready to raise his full-year delivery forecast, which sits at 894,000 vehicles, 7.5% ahead of the analyst consensus prior to Tesla’s Q1 results.

Potter notes risks in the second half of the year due to ramping up new factories in Germany and Texas.

“We still think these new factories could cause margin pressure, delivery delays, and temporary multiple compression, but we don't want to overthink things: TSLA is a flagship holding, and we would own the shares.“

Leaked company call details suggest Tesla may be targeting 1,000,000 deliveries in 2021.

Over the weekend, Wedbush analyst Dan Ives increased his TSLA price target to $1,000 per share.

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Disclosure: Rob Maurer is long TSLA stock and derivatives.