Tesla Price Target Raised To $430 From $380 At Guggenheim

Guggenheim analyst Robert Cihra raised his price target for Tesla shares to $430 and reiterates a Buy rating on the name. The stock closed Monday down $8.99 to $352.62. Early production constraints of its new high-end 100kWh battery packs led to Q2 deliveries of just 22,000, below the analyst’s 23,900 estimate.

The bigger news, however, is Monday’s revelation that production of the new Model 3 is on track to start in July, Cihra tells investors in a research note. The analyst believes most thought the target would not be met just a few months ago and he notes the Model 3 represents Tesla’s first car to genuinely launch on schedule. He sees two-to-three years of “upside leverage to also now start as volumes ramp off Tesla’s high fixed-cost structure”.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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