Wed Sep 25 08:16:55 UTC 2024: ## Tesla Stock Price Target Raised to $310 on Strong Delivery Expectations
**San Francisco, CA** – Piper Sandler analysts have boosted their price target for Tesla stock to $310 from $300, citing strong delivery estimates and a reduced weighted average cost of capital (WACC). The increased optimism stems from projected growth in Tesla’s vehicle deliveries, particularly for fiscal year 2024, where the firm anticipates a total of 1.75 million units.
This bullish outlook is driven by a strong Q3 performance prediction, with Tesla expected to deliver close to 459,000 units, marking a 5.4% increase year-over-year. Notably, analysts highlight China as a key driver, forecasting Tesla’s best quarter ever in the region.
While demand in Europe remains muted due to reduced EV subsidies and broader economic challenges, analysts anticipate Cybertruck deliveries to bolster U.S. sales. Despite relying on third-party estimates for U.S. intra-quarter sales figures, Piper Sandler believes a quarter-over-quarter increase is achievable.
The firm projects a 12% contribution to total deliveries from the “Rest of World” regions in Q3, potentially surpassing their estimate of 55,000 units based on historical performance.
The analysts also point to a reduction in WACC to 13.3%, compared to the previous 13.5%, further supporting the price target increase. However, they acknowledge that the focus on delivery numbers could be overshadowed by the upcoming unveiling of Tesla’s robo-taxi program on October 10th.
Despite this optimism, Piper Sandler maintains their “Overweight” rating on Tesla stock, acknowledging potential risks such as production delays, customer dissatisfaction, or supply chain disruptions.
First Piper 