Tesla (TSLA) receives price target bump to $500 from Piper Sandler
Yesterday at 12:07 PM
Tesla’s (NASDAQ:TSLA) work in artificial intelligence appears to be getting more recognition from analysts following the company.
This was highlighted recently in a note from Piper Sandler.
Piper Sandler’s updates:
- In its note, Piper Sandler noted that Tesla remains its “#1 buy-and-hold idea.”
- Piper Sandler also adjusted its price target for TSLA stock from $315 to $500 per share.
- The firm maintained its “Overweight” rating on TSLA shares as well.
- Piper Sandler noted that it is transitioning to a P/E-based methodology, and its $500 per share TSLA price target is based on 120x FY26E EPS, as noted in an Investing.com report.
Piper Sandler raises its $TSLA PT to $500 from $315; investors starting to appreciate Tesla's potential "real-world" artificial intelligence. pic.twitter.com/Kyv6CiDs7w
— Gary Black (@garyblack00) January 21, 2025
Rationale and Expectations:
- As per the firm’s analysts, investors are starting to appreciate Tesla’s potential in real-world AI.
- Tesla’s potential in AI is pushing portfolio managers to entertain upside scenarios for the electric vehicle maker.
- While there are uncertainties for Tesla in the near term, the long-term outlook for the company is quite promising, Piper Sandler noted.
- “We expect Tesla to deliver 1.96M units in 2025 (vs. 1.79M in 2024), but we expect >100k incremental units to come from unknown vehicles, and another 70k incremental units from Cybertruck,” Piper Sandler analysts noted.
- The firm also noted that it now expects Tesla to max out at around 4.6 million vehicles per year by 2032.
- The firm expects products like FSD to gain more prominence in Tesla’s overall business. “We are now modeling a contribution from FSD licensing,” the analysts noted.
- The analysts also noted that investors will likely gain better clarity on Tesla’s product cadence in about a year.
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