Piper Sandler analysts reaffirmed an Overweight rating and $450 price target on Tesla (NASDAQ:TSLA), pushing back against the narrative that recent delivery declines are politically driven.
While acknowledging that Elon Musk’s public persona may have some negative impact on consumer sentiment, Piper Sandler argues that logistical and operational challenges are the primary reason behind Tesla’s expected double-digit year-over-year drop in Q1 deliveries.
The firm points to updated wait time data, indicating that supply constraints—not demand issues—are likely responsible for the shortfall. Tesla has faced multi-week shutdowns across all four of its Model Y production facilities, limiting available inventory regardless of demand levels.
Looking ahead, momentum could pick up quickly, with new vehicle launches reportedly on the horizon, and the much-anticipated robo-taxi unveiling slated for June. These developments could reinvigorate investor enthusiasm and open up fresh growth avenues.
