(This story is for CNBC Pro subscribers only.) Piper Sandler raised its price target on Tesla to a street high, saying the electric automaker's push into other areas of clean energy will drive the stock higher. The firm's analyst Alexander Potter raised his price target to $928 per share, up from $729. That is the highest near-term target among major analysts, but is below where the stock peaked during its rapid rise earlier this month. The stock finished trading at $917.42 per share on Wednesday, about 1% below Piper's target and nearly 7% above where shares closed on Tuesday. It briefly traded above the target price during the day's regular trading session. The potential market for Tesla's solar and energy storage businesses could be more than $230 billion the United States alone, Potter said. "By combining eco-friendliness with blistering 0-60 times and 21st century tech, Tesla has hot-wired human psychology and turned consumers into unwitting climate warriors," Potter said in a note to clients. Though the batteries and solar power products currently make up less than 10% of Tesla's sales, Potter said they could see a similar growth pattern with those products that it has seen with its cars. "So long as 'the 1%' buy Tesla's products, the company's offerings will become more accessible to less well-endowed consumers. This story has already played out in the Automotive segment, and in the coming years we think Tesla will replicate its success in Energy Generation and Storage," Potter said. Part of Tesla's clean energy business comes from the automaker's controversial 2016 acquisition of SolarCity. The company installs about 5 million solar rooftop units per year, according to the note.
Elon Musk speaks at SolarCity's Inside Energy Summit in New York.
Rashid Umar Abbasi | Reuters
(This story is for CNBC Pro subscribers only.)
Piper Sandler raised its price target on Tesla