Piper Sandler believes Tesla's (NASDAQ: TSLA) prospects for 2022 are even better after receiving its Q4 2021 delivery results. The firm believes the maker will be able to deliver more than 1.5 million vehicles this year and will maintain a high market share despite the competition.
Piper Sandler expects the new factories in Texas and Germany to help the manufacturer meet strong global demand for its vehicles. The firm believes the momentum Tesla showed in its fourth-quarter delivery report will continue into 2022. Based on this, Piper Sandler changed its forecast for deliveries for this year, raising it from 1.38 million to 1.53 million. In the four quarters of 2021, Tesla delivered 936,172 electric vehicles.
In addition to raising its delivery forecast, the firm is raising its margin expectations, citing the growing influence of software, among other things. "We're also nudging our 2022 margin expectations higher, because with strong volume and a rising contribution from software, we suspect Tesla will continue exceeding profitability expectations," wrote analyst Alexander Potter.
Piper Sandler believes that Tesla's market share is limited only by the capacity of its own factories to produce cars. The analyst is confident of this even as more and more electric vehicles from competing companies enter the market. The firm has an Overweight rating on Tesla shares and a price target of $1,300.
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