Tesla

Tesla TSLA Has Support from Piper Sandler as Nothing Has Changed for Company in Long Run

Tesla TSLA Has Support from Piper Sandler as Nothing Has Changed for Company in Long Run

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Tesla has support from Piper Sandler despite their share price drop. The firm's analysts are confident that nothing has changed for the company in the long run.

Tesla shares rose more than 9% in Thursday's session and closed at $121.82 per share. However, over the past three months, their value has fallen by more than 50%. A combination of several factors allowed the bears to inflate each negative aspect to huge sizes, which continued to put pressure on their value. However, analysts at Piper Sandler have an Overweight rating and a $340 price target on the producer's shares, emphasizing their confidence in it.

“TSLA has been in a tailspin over the past few weeks with bearishly-inclined traders and/or tax-loss sellers pouncing on every bit of incrementally negative news,” the analysts wrote. “And of course, the Twitter situation and China's COVID outbreak haven't helped matters.”

Piper Sandler said it acknowledges that Tesla's growth may slow in 2023 due to factors such as recession, rising interest rates, and “tapped-out” demand. However, this will not have a serious negative impact on the manufacturer, and nothing will change in the long term.

“But we do NOT believe that 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,” the analysts wrote.

Piper Sandler urged investors to stay up to date with the data for each of Tesla's major regions, as they see no red flags in these datasets.

© 2022, Eva Fox | Tesmanian. All rights reserved.

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This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

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