Piper Sandler Raises Tesla Price Target to $500

Piper Sandler analyst Alexander Potter raised the price target on Tesla (NASDAQ: TSLA) to $500 (from $315) while maintaining an Overweight rating.

“Still our #1 Buy-and-Hold Idea, but 1H25 may be Choppy. Over the years, we’ve curated over a dozen Tesla-specific datasets, many of which we rarely discuss.

For the first time, we’ve consolidated this content into a single report (pages 2-35). In the future, we’ll make an effort to publish these charts more regularly.

Regarding our views on the stock, TSLA is still our #1 buy-and-hold idea, and accordingly, we’re boosting our price target to $500 (up from $315).

We think investors are starting to appreciate Tesla’s potential in “real-world” A.I., and as a result, PMs are more willing to entertain upside scenarios.

That said, the long-term narrative often takes a back seat when current-year estimates are falling, and in this regard, the outlook is highly uncertain.

In our opinion, it’s clear that Tesla’s thesis will ultimately depend on new-age opportunities like Optimus robots and neural-net-training-as-aservice.

The problem is, these nebulous revenue streams are difficult to incorporate into a DCF. Given this, we’re shifting to a P/E-based valuation methodology.

Our $500 price target is based on 120x FY26E EPS, which is in the top-half of TSLA’s historical trading range.

By one year from now, investors should have greater clarity re: new product cadence; this should allow them to focus on other, more exciting topics (e.g. rising FSD efficacy and the implications for Tesla’s A.I. ambitions).”

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