Mizuho Securities Raises Tesla TSLA PT to $1,300 from $950

Mizuho Securities has raised its price target on Tesla shares from $950 to $1,300 as it sees an increase in deliveries in 2022, production of 4680 battery cells, and the launch of Cybertruck.

Mizuho Securities analyst Vijay Rakesh raised the price target on Tesla from $950 to $1,300 while maintaining a Buy rating. The analyst said Q4 2021 delivery figures suggest growth in 2022 as Tesla continues to ramp up new manufacturing facilities (Giga Texas and Giga Berlin), 4680 battery cells, and launches Cybertruck.

The firm notes that Tesla delivered 936,000 vehicles in 2021, up 87% from a year earlier. In their opinion, this provides good prerequisites for actively increasing production in 2022, especially taking into account the almost completed Giga Texas and Giga Berlin.

"We view 2022 positively for TSLA with new production capacity coming online in Austin and Berlin."

Mizuho Securities expects 4680 battery production to grow in 2022, driving down battery costs and providing good tailwinds. In addition, the company expects the start of production of the Cybertruck electric pickup truck, pre-orders for which, according to unofficial data, exceeded 1 million.

"We view 2022 positively for TSLA with new production capacity coming online in Austin and Berlin. In addition, Cybertruck and 4680 batteries are expected to ramp in 2022, expanding TSLA's portfolio into additional auto segments and driving down the battery cost curve. We believe new greenfield production capacity and the 4680 battery should provide additional GM improvement tailwinds, especially as Fremont mix declines over time, though we believe 2022 could see some GM headwinds from initial Texas/Berlin factory ramps with potential capacity underutilization."

The firm is DecQ from $15.1B/$1.65 to $16.5B/$2.25, F22E from $66.5B/$7.91 to 74.5B/$9.20, and F23E from $82.4B/$10.64 to $93.8B/$12.60. Introducing F24E at $112B/$16.25 F25E at $133B/$20.84 with F24E/F25E deliveries of ~1.9M/2.2M vehicles.

H/T @SawyerMerritt/Twitter

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