Tesla (TSLA) Insights from CPCA Data - Piper Sandler

Piper Sandler analyst Alexander Potter reiterated an Overweight rating and $1,350.00 price target on Tesla (NASDAQ: TSLA) after the China Passenger Car Association (CPCA) released February sales and production figures, illuminating continued strength for Tesla's Shanghai factory which the analyst aggregated into 5 key points:

1) According to CPCA, Tesla sold 56,515 units in February, ~33k of which were exported
2) For reference, almost 60k units were sold in January, but February is a shorter month
3) ...also, it's hard to interpret monthly sales rates due to the impact of Chinese New Year
4) In per-day terms, production was likely flat m/m, depending on holiday downtime
5) A modest increase in per-day production would imply 70k units in March, or 193k+ for Q1

The analyst commented "These figures are always topical, but we've also noticed a general uptick in inbound calls regarding Tesla's exposure to geopolitical risks and/or commodity price spikes. Nickel prices are garnering particular attention, given their importance in battery manufacturing, but in our view, deteriorating US-China relations are potentially more consequential in the long-term. Tesla's China exposure is a major positive (both for Tesla and for China), but we must admit: if American companies are eventually used as pawns in a wider geopolitical conflict, then Tesla shareholders would likely suffer."

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $858.97 yesterday.

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