Tesla (NASDAQ: TSLA) bull Wedbush Securities has raised its price target on the automaker’s stock from $175 to $200 following an “epic” Earnings Call last night.
“Musk and Co. delivered in epic fashion with demand that is currently 2x production coming out of the gates in 2023 and laying out a 1.8 million delivery bogey for the year,” Analysts Dan Ives and John Katsingris said, “which was exactly what the bull wanted to hear.”
Wedbush was extremely pleased to hear Tesla reiterate its 1.8 million unit delivery target for the year, which would keep with its annual goal of 50 percent growth each year.
“The bears (for now) will go back into hibernation mode,” Wedbush wrote.
During the call, Tesla outlined a strong financial status with plenty of cash on hand, a strategy the company believes will keep it free of drama if and when a major recession occurs.
One of the most key concerns for Tesla bulls moving forward was whether the company would confront the expectation that automotive margins would drop after prices on its vehicles were cut significantly earlier this month. Tesla said in its Shareholder Deck released before the call:
“In the near term we are accelerating our cost reduction roadmap and driving towards higher production rates, while staying focused on executing against the next phase of our roadmap.”
Tesla soared in pre-market trading this morning, spiking over 10 percent by the time the markets opened at 9:30.
Tesla opened at $158.60 and is up 9.8 percent at 9:31 AM on the East Coast.
Disclosure: Joey Klender is a TSLA Shareholder.
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