Tesla shortlisted for the 2022 "Preferred Stocks" list! Goldman Sachs raised its price target to $1200

Financial Associated Press (Shanghai, editor Huang Junzhi) - After Tesla achieved a record fourth-quarter delivery, Goldman Sachs analyst Mark Delaney added the company's stock to its list of "preferred stocks" for 2022 on Monday. Tesla shares closed more than 3 percent higher on Monday.

Delaney maintained a "buy" rating on Tesla stock and raised its price target from $1125 to $1200. The rationale is "strong fourth-quarter deliveries," which he sees as a signal of further growth in Tesla sales this year and next. He also mentioned the group's vertical integration in hardware and software, as well as the charging station ecosystem, as well as growth potential in the solar and storage sectors.

Tesla said on January 2 that in the three months to December, its deliveries were 308,600 units, up 70 percent from the same period last year. This is the sixth consecutive quarter of Tesla's record. Total deliveries in 2021 were 936172 units, up 87% year-on-year.

In addition, as Tesla's production and delivery scale expands, the company's profitability is also improving, with a profit margin of 30.5% in the third quarter, a record high, and revenue reached $13.7 billion. Tesla will announce its fourth-quarter results on January 27.

In a note to investors, Delaney wrote, "We believe that given Tesla's leadership in electric vehicles (including its vertical integration and tight coupling of hardware and software, as well as the ecosystem of charging stations and brands), and its broader focus on clean transportation (given its solar and storage businesses), this will be the best time to take advantage of the long-term shift to electric vehicles." ”

"We expect that with the launch of Tesla's important Model Y products and the construction of new plants in Berlin and Austin, Texas, the profit margin will improve in the medium term; in the long run, as well as software revenue increases." He added.

Also bullish on Tesla is U.S. investment bank Wedbush, whose managing director and analyst Dan Ives expects Tesla's market capitalization to reach $2 trillion in 18 months. Last October, the company's market capitalization reached $1 trillion for the first time.

Ives also mentioned Tesla's record deliveries, adding that "it was a jaw-dropping quarter." This suggests that the green champion wave will continue into 2022. ”