Piper Sandler maintains Tesla stock Overweight with $400 target

Published 22/05/2025, 13:56
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On Thursday, Piper Sandler reiterated its Overweight rating on Tesla stock (NASDAQ:TSLA), maintaining a $400.00 price target. With Tesla currently trading at $334.62 and analyst targets ranging from $115 to $465, the firm’s outlook remains optimistic. The firm’s analyst highlighted the anticipation surrounding the upcoming robo-taxi launch in Austin, Texas, as a significant focal point for investors and industry watchers. According to InvestingPro, Tesla maintains a "GOOD" overall financial health score.

Tesla’s recent performance has seen a surge despite challenges in providing details on new product launches. The analyst noted that while Tesla’s delivery outlook has weakened, and there is a lack of clarity on the pricing, specifications, or launch timing of new products, the company’s stock has still managed to rally significantly. This rally has contributed to Tesla’s impressive 85.79% return over the past year. The stock currently trades at a P/E ratio of 175.14, with 22 analysts recently revising their earnings estimates downward, as revealed by InvestingPro’s analysis (which offers 18 additional valuable insights about Tesla).

The forthcoming robo-taxi service, scheduled to launch next month in Austin, has fueled much of the optimism surrounding Tesla, according to Piper Sandler. Although the specifics of what the launch will entail remain uncertain, and there is potential for unforeseen setbacks, the firm posits that Tesla represents an unparalleled disruptive force in the industry.

Piper Sandler’s commentary underscores the high expectations from Tesla’s innovative ventures, particularly in automated transportation. The analyst’s position suggests a strong belief in Tesla’s continued growth and impact, maintaining a bullish stance on the electric vehicle manufacturer’s prospects.

In other recent news, Tesla has reaffirmed its Overweight rating with a price target of $410 by Morgan Stanley (NYSE:MS), highlighting the company’s significant role within the broader economic landscape influenced by Elon Musk’s ventures. Cantor Fitzgerald also maintains an Overweight rating on Tesla, setting a higher price target of $425, and notes positive developments such as the planned Robotaxi launch in Texas and a new lower-priced vehicle expected in 2025. The firm anticipates challenges due to tariffs and the potential removal of the EV tax credit but emphasizes Tesla’s global manufacturing capabilities as a mitigating factor.

Additionally, Tesla has appointed Jack Hartung to its Board of Directors and Audit Committee, effective June 1, 2025. Hartung, who brings over two decades of financial leadership experience from Chipotle Mexican Grill (NYSE:CMG), is expected to contribute significantly to Tesla’s strategic direction. Meanwhile, Tesla’s stock was part of a broader decline in tech stocks during premarket trading, influenced by Moody’s downgrade of US credit. Despite these fluctuations, analysts from Morgan Stanley and Cantor Fitzgerald remain confident in Tesla’s future growth and strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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