Piper Sandler Lowers Tesla Price Target to $450

Piper Sandler analyst Alexander Potter lowered the price target on Tesla (NASDAQ: TSLA) to $450 (from $500) while maintaining an Overweight rating.

“Updating Ests. & PT After Analyzing 10-Q; Awaiting Optimus & Cybercab Catalysts; Following the Q2 results and publication of the 10-Q, we are cutting our 2026/2027 EPS estimates to reflect lower margins.

This is particularly true in the Energy segment, but also in the Automotive segment. We’re also cutting our estimates for (100% margin) regulatory credits.

However, these revisions are partially offset by higher revenue, due to market share gains in the car market.

We’re also boosting our contribution from full self-driving (FSD) software, and increasing our margins in the Service segment.

Interestingly, these changes result in an increased implied DCF-based valuation, because FSD and Service are key drivers of Tesla’s terminal value.

However, since we base our price target on 233x FY27E EPS, our price target is falling to $450, down from $500.”

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