Piper Sandler's super bullish Tesla report with $2,300 target even makes Elon Musk say 'Wow'

Published Tue, Jul 14 20209:11 AM EDTUpdated Tue, Jul 14 20204:07 PM EDT

(This story is for CNBC PRO subscribers only.) Piper Sandler is now the biggest Tesla bull on the Street, and the firm's eye-popping new target elicited a response from CEO Elon Musk himself, who commented on Twitter with a simple "wow." The firm raised its target on shares of the electric vehicle maker to $2,322 from $939 on Monday night, which implies a 55% rally ahead for the stock. The call firmly establishes the firm as the most optimistic on the Street. The second most bullish target is $1,525, while the average is $867.69, according to data from FactSet. The Elon Musk-led company has always been a polarizing one, with bulls and bears lining up on either side with equal enthusiasm. The firm perhaps anticipated that a call like this would make a splash, titling its note "defending our new $2,300+ price target." Piper said that despite the stock's record run, which has seen shares jump more than 250% this year, Tesla's position as a leader in electric vehicles sets it up for more growth ahead. "Tesla is the most consequential company in the mobility ecosystem, and this is unlikely to change in the next decade," analyst Alexander Potter said. "It's hard to see how competitors can catch up," he added while reiterating his overweight rating on the stock. The call comes as speculation mounts that Tesla could soon join the S & P 500. If the company reports a fourth-straight quarter of GAAP profits when it posts second quarter results on July 22, it will have met one of the main requirements for inclusion in the index. Shares of Tesla closed 1.3% higher on Tuesday following a volatile trading session that saw the stock jump more than 6% at one point, while also spending some of the day in negative territory. On Monday the stock soared more than 16% to a new all-time high of $1,794.99, before giving back those gains and closing in negative territory. At one point on Monday, the company's market value topped $320 billion, briefly making it the 10th largest U.S. stock by market value , according to data from FactSet. But not everyone believes in the rally, which has seen shares rise 60% in one month. Noted short seller Jim Chanos, who goes by the pseudonym "Diogenes" on his Twitter account "@WallStCynic," called out Piper's call as "truly one for the ages." A noted Tesla bear, he has held short positions against the company . "It seems to me analysts are adjusting their guidance to movements in the stock rather than changes in the industry," another Twitter user wrote. The stock's surge to new highs has been a frequent topic of discussion on Twitter, prompting Musk to periodically weigh in on his company's valuation. Perhaps most notably, back in March he tweeted "Tesla stock price is too high imo [in my opinion]." - CNBC's Michael Bloom contributed reporting.

Elon Musk, chief executive officer of Tesla Inc., smiles while speaking to members of the media outside federal court in New York, U.S., on Thursday, April 4, 2019.

Natan Dvir | Bloomberg | Getty Images

(This story is for CNBC PRO subscribers only.)

Piper Sandler is now the biggest Tesla bull on the Street, and the firm's eye-popping new target elicited a response from CEO Elon Musk himself, who commented on Twitter with a simple "wow."

The firm raised its target on shares of the electric vehicle maker to $2,322 from $939 on Monday night, which implies a 55% rally ahead for the stock. The call firmly establishes the firm as the most optimistic on the Street. The second most bullish target is $1,525, while the average is $867.69, according to data from FactSet.