U.S. stock futures mixed; Nvidia earnings spark little cheer
Investing.com - Piper Sandler maintained its Overweight rating and $400.00 price target on Tesla (NASDAQ:TSLA), representing a 30% upside from current levels, following a recent Florida court verdict that found the electric vehicle maker partially liable for a 2019 crash. According to InvestingPro data, Tesla currently trades at a P/E ratio of 168, reflecting the market’s high growth expectations.
The research firm addressed media coverage of the verdict, which has characterized the decision as a "stunning rebuke" and a "massive blow" with a potential $243 million obligation for Tesla.
Piper Sandler believes these headlines "paint an unrealistically negative picture" of the situation and its impact on the company’s financial position or future prospects.
The firm specifically noted that in its years covering Tesla, it has "learned to ignore headlines related to Autopilot liability," though it acknowledged the topic has gained renewed attention with Tesla’s robotaxi development plans.
Piper Sandler concluded that Tesla shareholders "shouldn’t be losing sleep" over the Florida verdict, maintaining its positive outlook on the company despite the recent legal development.
In other recent news, Tesla has signed a $4.3 billion agreement with LG Energy Solution to procure lithium iron phosphate batteries, as reported by Cantor Fitzgerald. This deal will see batteries sourced from LG’s Michigan plant starting in August 2027 and lasting until July 2030, with options to extend. Additionally, Tesla’s board of directors has approved a substantial stock award for CEO Elon Musk, granting him 96 million shares of restricted stock under the company’s 2019 Equity Incentive Plan. The shares are subject to a two-year vesting period, requiring Musk to remain in continuous service as CEO or an executive officer responsible for product development or operations. Furthermore, a report from Electronic Times suggests that Samsung (KS:005930) Electro-Mechanics will supply camera modules for Tesla’s Optimus robots, although the publication did not cite sources for this information. Moody’s Ratings has affirmed Tesla’s Baa3 long-term issuer rating with a stable outlook, highlighting the company’s technology strengths despite challenges in its automotive business. Moody’s noted Tesla’s vehicle technology, software, and AI capabilities as foundations for continued innovation and potential expansion into autonomous vehicles.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.