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Investing.com - Piper Sandler has raised its price target on Tesla (NASDAQ:TSLA) to $500 from $400 while maintaining an Overweight rating on the stock. The electric vehicle giant, currently trading at $437.11 with a market capitalization of $1.46 trillion, has demonstrated remarkable momentum with a 71.31% surge over the past six months.
The price target increase follows the firm’s recent trip to China, where analysts met with Chinese electric vehicle manufacturers to assess the competitive landscape.
Despite acknowledging that vertically-integrated Chinese automakers may represent Tesla’s primary competitive threat, Piper Sandler noted these companies still look to Tesla for guidance on real-world artificial intelligence implementation.
The research firm quoted one Chinese company stating, "without Tesla going from 0 to 1, we can’t go from 1 to 100," highlighting Tesla’s pioneering role in the industry.
Piper Sandler reaffirmed that Tesla remains its top investment idea for exposure to autonomous vehicles and robotics, with the firm’s report including key thesis debates and potential catalysts.
In other recent news, Tesla has reported several notable developments. Baird upgraded Tesla’s stock rating from Neutral to Outperform, citing the company’s potential leadership in AI, despite recent earnings misses. Baird also increased Tesla’s price target significantly from $320.00 to $548.00. Meanwhile, Goldman Sachs raised its price target for Tesla to $395 from $300, maintaining a Neutral rating, reflecting Tesla’s long-term growth potential and improved forward earnings estimates. Additionally, Tesla has settled a lawsuit related to a fatal 2019 Autopilot crash, reaching a confidential agreement with the victim’s family, thus avoiding a jury trial. In a separate analysis, Morgan Stanley highlighted parallels between Tesla’s AI robotics and the TikTok situation, suggesting potential collaborations between U.S. technology and Chinese manufacturing. These developments come as a pharmacy-related client signed a Letter of Intent to use Tesla’s humanoid robots, as noted by Macquarie.
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