American carmaker Tesla Inc. is likely to report a surge in its automotive gross margin next year, Seeking Alpha reported
- Piper Sandler kept its Overweight rating on Tesla and dubbed it as one of the favorites, noting that its automotive gross margin could breach the mid-20s in 2022.
- Analyst Alexander Potter and his team noted that Tesla remains to be the driving force for higher electric vehicle penetration across the globe, but Piper is working to include the firm’s declining market share into its forecast.
- Piper expects Tesla’s share of the market to “almost certainly fall” as competitors have yet to start selling battery electric vehicles. Tesla’s share is expected to continue growing and the declining market should not be seen as a bearish signal.
TSLA was up 0.99% premarket and is currently down 0.54%.