Piper Sandler recommends that investors continue to buy EV stocks

Piper Sandler analysts recommend that Tesla stock investors continue to “proactively purchase” the EV stock.

Video Transcript

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– Piper Sandler’s new note today says that Tesla is the stock I am following. It recommends that investors buy proactively at this point. Alexander Potter, an analyst, published a note Wednesday that highlighted the recent Tesla price cuts and the stock’s decline over the past few months as catalysts to the next leg up for Tesla shares. Piper Sandler points to the fact that Tesla’s Model Ys, which include the $7,500 federal credit, are now much more affordable.

The graph shows that Model Ys used to be more expensive than large SUVs such as a Chevrolet Suburban, GMC Yukon, or a Chevrolet Yukon. However, they are back in the price range mid-size SUVs such as a Ford Explorer and even cheaper than a Jeep Grand Cherokee. Piper claims that price cuts could increase US demand by 300-600,000 vehicles. Dave, I found that the graph was very striking when you consider that a Tesla Model Y is more expensive than large cars that can fit eight people.

Now, going back to Earth, I think a bit more and possibly being more competitive against other stocks on the market–or other cars in market.

– Yeah. You had to be nervous at first about the margins and how they would shrink after this $13,000 price reduction, but it just broadens your customer base and almost erases that Twitter hangover. He would be more polite if he just stopped talking. He can’t seem to get out of his own way. Elon’s favorable reputation has fallen by half in the last year, since he began speaking out political.

However, this opens up a new customer base. Ross Gerber is a Tesla bull but he said that the bullish case for Tesla was stronger than ever. He also criticized the Twitter situation. It seems to be working.