Image: Tesla
Piper Sandler analyst Alex Potter has raised his Tesla price target to $500 (up from $400), following a recent trip to China where he met with several local electric vehicle makers.
“After meeting with Chinese EV makers, we can see why Elon Musk respects these ‘fast followers’ so much. Indeed, vertically-integrated Chinese OEMs may be Tesla’s #1 competitive threat. But when it comes to ‘real world’ A.l., these companies look to Tesla for guidance – not the other way around. In the words of one company. ‘Without Tesla going from 0 to 1, we cant go from 1 to 100.’ Bottom line: TSLA remains our top idea for investing in autonomous vehicles and robotics,” he said.
Potter also noted: “We think the catalyst path matters more to the valuation than 2026 estimates. It now seems FSD v14 will be released any day; we think this will prompt a higher multiple.”
At the time of writing, Tesla stock is trading at around $434. Elon Musk responded on X, writing: “China has many excellent companies in many industries.”
While Tesla faces tough competition from Chinese EV makers, who continue to dominate in production volume, the U.S. automaker maintains a technological edge. Tesla has also managed to somewhat regain momentum in China, with recent launches like the wildly popular three-row, six-seat Model Y L and the longest-range Model 3 to date. Sales in the region rebounded 40% in August, reversing earlier declines.
Tesla stock has been on an upswing in recent weeks, bolstered by multiple analyst upgrades and Musk’s own $1 billion purchase of Tesla shares on the open market last week — his first direct stock buy since 2020. The Tesla board has also proposed a historic $1 trillion compensation plan for Musk, set for a shareholder vote in November, tying payouts directly to achieving ambitious valuation milestones.
With a potential FSD 14 release looming and continued global expansion, Potter reaffirmed Tesla as his top pick for investors focused on autonomy and robotics, underscoring Wall Street’s growing confidence in the company’s long-term vision.
