Piper Sandler analyst Alexander Potter has adjusted his price target for Tesla stock down to $290 from $300, while maintaining an Overweight rating on the shares. In a note explaining the revised valuation, Potter acknowledges near-term headwinds for Tesla amid macroeconomic uncertainty.
Specifically, Potter points to Cybertruck delays and impending cost pressures from new factories ramping up as potential catalysts for sideways trading in the months ahead. Even with exciting growth initiatives on the horizon, Tesla faces profitability challenges in the short term.
However, Potter remains upbeat on Tesla’s long-term potential, especially as Cybertruck nears production. He believes Tesla’s margins have likely bottomed in Q3, setting the stage for a rebound once macro conditions improve and Tesla scales new products.
For now, Potter has trimmed his enthusiasm slightly amid the challenging economic environment. But he still views Tesla as a compelling investment for patient investors focused on the coming years rather than next quarter.
Despite cutting his price target by 3%, Potter’s bullish Overweight rating indicates he expects considerable upside for Tesla stock once macro headwinds fade. The lowered projection seems to reflect near-term caution rather than doubts about Tesla’s category-leading market position.