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On Tuesday, Piper Sandler reiterated its Overweight rating and $400.00 price target on Tesla stock (NASDAQ:TSLA), emphasizing the importance of Tesla’s Full Self-Driving (FSD) software to the valuation. The firm’s analyst highlighted insights from a recent call with Elias Martinez, the creator of the FSD Community Tracker, which monitors the progress of Tesla’s autonomous driving technology. According to InvestingPro data, Tesla currently trades at a P/E ratio of 147.65, suggesting a premium valuation, with analyst targets ranging from $115 to $465, reflecting diverse market opinions on the company’s prospects.
The discussion with Martinez revealed that Tesla’s current FSD software, version 13, is not yet capable of supporting fully autonomous vehicles. Despite this, the analyst noted that the software is a key factor in the firm’s price target for Tesla. The expectation of robotaxi services beginning in Austin has increased investor focus on the company’s FSD capabilities. With a market capitalization of $902.71 billion and trailing twelve-month revenue of $95.72 billion, Tesla maintains its position as a dominant player in the automotive industry.
Tesla has not issued significant updates to the FSD software since the release of version 13 about 4.5 months ago. The analyst suggested that Tesla’s efforts during this period were likely concentrated on ensuring a safe launch of its services in Austin. The lack of visible progress on the FSD Community Tracker may not reflect the behind-the-scenes advancements that Tesla has been making.
The analyst’s comments come as Tesla is preparing for the much-anticipated launch of its robotaxi fleet in Austin, which is expected to be a significant step towards the company’s goals in autonomous driving. The launch is seen as a critical development that could potentially transform the dynamics of personal and shared transportation.
Investors and industry observers are closely monitoring Tesla’s advancements in autonomous driving technology, as it is considered a major component of the company’s future growth strategy. The success of the FSD software and the deployment of robotaxis are likely to be pivotal for Tesla’s performance in the market. InvestingPro analysis indicates Tesla maintains a "GOOD" overall financial health score, though investors should note its beta of 2.43 suggests higher volatility compared to the broader market. For deeper insights into Tesla’s valuation and 20+ additional ProTips, consider exploring the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Tesla has integrated over 60 Chinese suppliers into its global procurement system, as confirmed by Vice President Tao Lin. This strategic move aims to strengthen Tesla’s supply chain by expanding its supplier base. Meanwhile, Tesla’s new car registrations in Italy increased by 29% in April compared to the previous year, although the total registrations for the first four months of 2025 are down by 4%. In contrast, Tesla’s new car sales in Sweden experienced a significant drop of 80.7% in April compared to the same month last year, with only 203 vehicles sold.
Goldman Sachs has maintained a Neutral rating on Tesla, with a price target of $235, following Tesla’s update to its Full Self-Driving software in China. The update introduced features like automatic lane change and traffic light detection, although some reviewers noted issues with local traffic regulations. Additionally, Tesla is planning to expand its robotaxi services, starting in Texas in June 2025, and may face a competitive market if it ventures into China.
The cost of goods sold per vehicle globally for Tesla was about $35.5K in the first quarter of 2025. These developments come as Nvidia (NASDAQ:NVDA) led a decline in the Magnificent Seven stocks, including Tesla, amid uncertainties surrounding trade policy and economic direction.
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