Shares of (NASDAQ: TSLA) finished down 12% Wednesday following the release of the company's second-quarter earnings results the previous afternoon. The EV specialist saw a recovery in vehicle sales, but the lower selling prices needed to stimulate demand pressured its profitability.

Piper Sandler doesn't see the lower margins hurting Tesla in the long run, however. The investment bank maintained an overweight (buy) rating on the stock, but it also increased its price target from $205 to $300. This would imply 38% upside over Tesla's current share price.

Let's see how realistic that target is considering Tesla's latest update.

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Source Fool.com