The ongoing supply-chain issues continue to play spoilsport for automakers. Meanwhile, the Russia-Ukraine crisis could worsen the situation further. However, Daiwa analyst Jairam Nathan remains confident about Tesla’s (NASDAQ:TSLA) ability to navigate the challenges better than its peers.
Highlighting Tesla’s 2021 performance, Nathan said Tesla has managed chip shortages better, while its cost-efficient China factory continues to be a major export hub, providing a competitive advantage amid the current geopolitical crisis.
Nathan upgraded Tesla stock to a Buy from a Hold and expects higher fuel costs to drive demand for EVs in the future. However, he lowered his price target to $900 from $980.
It’s worth noting that Tesla’s vehicle deliveries remained strong in 2021 (about 936K, up 87% year-over-year) despite the supply-chain concerns. Further, the company expects deliveries to stay strong and increase by 50% in 2022.
Besides Nathan, Piper Sandler analyst Alexander Potter also has a bullish outlook on TSLA shares. While Potter sees chip shortages as a headwind, he expects Tesla to exceed its delivery growth guidance handily. The analyst expects Tesla to deliver 1.58 million vehicles in 2022, up about 69% year-over-year.
TSLA Stock Forecast
Tesla continues to impress with its record deliveries. Meanwhile, increased volumes and operating leverage will likely support its margins. However, supply-chain concerns and increased commodity costs keep Wall Street analysts cautiously optimistic on TSLA stock.
Nevertheless, investor sentiments remain positive on TSLA stock. Per TipRanks’ Stock Investors tool, 1.8% of investors holding portfolios on TipRanks have increased their stake in Tesla shares.
TSLA’s stock price forecast of $1,068.40 indicates 21.4% upside potential to current levels. Meanwhile, its Moderate Buy consensus rating is based on 15 Buy, 7 Hold, and 6 Sell recommendations.
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