New Street analyst Pierre Ferragu expects Tesla shares to “sustainably trade” in the 50-100 price-to-earnings valuation range, and “probably in the higher-end through a strong year.” He therefore sees the stock at end the year “at least at” his $1,580 target price, presenting a further 50% upside from recent levels. Ferragu sees a “perfect storm in 2022” for Tesla with the Shanghai plant continuing to ramp, and Berlin and Texas coming online. These will bring Tesla’s total production run rate to over 1.8M at the end of 2022, unless chip supply constraints worsen and create a significant headwind, Ferragu tells investors in a research note. Further, the analyst expects Tesla to break the 30% gross margin bar this year.
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