Piper Sandler maintains Tesla stock rating despite after-hours drop

Published 24/07/2025, 08:12
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Investing.com - Piper Sandler has reiterated its Overweight rating and $400.00 price target on Tesla (NASDAQ:TSLA) following the electric vehicle maker's second-quarter results. According to InvestingPro data, analyst targets for Tesla range from $115 to $500, with the stock currently trading at high valuation multiples across key metrics.

Tesla shares fell approximately 5% in after-hours trading despite what the research firm described as "solid" financial results in the quarterly report.

Piper Sandler expressed uncertainty about the reason for the stock decline, suggesting investors may have misinterpreted CEO Elon Musk's comment that an upcoming new product would look exactly like the Model Y.

The research firm indicated it remains focused on Tesla's Full Self-Driving (FSD) technology rather than vehicle aesthetics, noting Musk's prediction that half the U.S. population will have access to unsupervised FSD by 2026.

Piper Sandler acknowledged Musk's warning about "difficult quarters ahead" as U.S. government support decreases, but maintained its positive outlook on the company's long-term prospects.

In other recent news, Tesla reported its second-quarter 2025 earnings, which aligned with market expectations for earnings per share (EPS) and slightly surpassed revenue forecasts. The company's EPS was $0.40, matching analysts' predictions, while revenue reached $22.5 billion, just above the anticipated $22.4 billion. In addition to these results, Canaccord Genuity raised its price target on Tesla to $333.00 from $303.00, maintaining a Buy rating on the company's shares. This target increase is based on a multiple of approximately 38 times the firm's 2027 estimated non-GAAP earnings per share of $8.77 for Tesla. Meanwhile, Truist Securities reiterated its Hold rating on Tesla stock with a price target of $280.00 following the company's second-quarter results. Truist described Tesla's Q2 performance as "noisy," though noted that revenue and earnings per share were in line with expectations. These developments reflect ongoing interest and analysis from investment firms regarding Tesla's financial performance and future prospects.

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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