Piper Sandler’s new price target of $500 implies a 17% upside to the stock’s closing price on Friday.
Piper Sandler raised its price target on Tesla (TSLA) to $500 from $400, causing shares to rally 4% on Monday morning.
The brokerage kept an ‘Overweight’ rating on the shares. Sandler’s new price target of $500 implies a 17% upside to the stock’s closing price on Friday.
After meeting with Chinese EV makers, Piper Sandler stated it can see why Elon Musk respects these “fast followers” so much. The firm argued that vertically integrated Chinese OEMs may be Tesla’s number one competitive threat, but when it comes to “real world” AI, these companies look to Tesla for guidance—not the other way around, Piper argued.
An EV maker allegedly told the firm that “without Tesla going from 0 to 1, we can’t go from 1 to 100.” Tesla remains its top idea for investing in autonomous vehicles and robotics, the firm concluded.
On Stocktwits, retail sentiment around TSLA stock stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume fell from ‘extremely high’ to ‘high’ levels.
Tesla is currently attempting to pivot away from being merely an EV maker with investments in AI and robotics, including robotaxis and humanoid robots.
Earlier this month, Tesla proposed a new compensation package for its CEO, Elon Musk. According to the new pay plan, Musk will receive no salary but will be awarded up to 423.7 million shares of Tesla in installments when the company meets certain milestones, including increases in earnings, vehicle deliveries, robotaxis, and humanoid robots. The new award will take between 7.5 and 10 years to vest in total. The new package will be put to a shareholder vote at the company’s annual meeting on November 6.
Tesla’s EV business, however, hasn’t been faring well. The company reported a year-on-year decline in vehicle deliveries in both the first and second quarters of this year.
TSLA stock is up by 10% this year and by 77% over the past 12 months.
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