Piper Sandler analyst Alexander Potter raised the firm’s price target on Tesla to $360 from $344 and keeps an Overweight rating on the shares. “Several cross-currents may conspire” to drive shares of Tesla lower in the coming weeks, including shorter wait times, China weakness and rising interest rates, Potter tells investors in a research note. The analyst also thinks Tesla will likely cut prices sometime next year. Given all of this, some investors may erroneously conclude that Tesla faces a demand problem, says Potter. He believes failing wait times suggest improving supply, not flagging demand. Potter boosted the price target to reflect Tesla’s recent decision to increase pricing on its full self-driving software package. He tells investors to not be surprised, but “excited,” if the shares selloff.
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