Investment bank Piper Sandler has updated its Tesla Inc. (NASDAQ:TSLA) price target to $500 following a visit to China, where it met officials from Li Auto Inc. (NASDAQ:LI), Stellantis NV (NYSE:STLA), owned Leapmotor and more.
Chinese Companies Look Towards Tesla For Guidance, Piper Sandler Says
In a new investor's note released by the bank, shared on the social media platform X on Sunday by Future Fund LLC‘s Gary Black, Piper Sandler said that it met with Chinese EV makers, saying that the "vertically-integrated Chinese OEMs may be Tesla's #1 competitive threat." The firm added that the OEMs have "arguably matched/surpassed" Tesla in terms of manufacturing, but look towards the EV giant for guidance on "real world A.I."
The bank also reported that a company it spoke to said that "without Tesla going from 0 to 1, we can't go 1 to 100." The bank also said it predicts Tesla will deliver 495k units in Q3 2025.
TSLA is currently trading for $429.95 during pre-market trading, according to Benzinga Pro data. The price target implies a potential 16% gain from current levels.
Dan Ives Bullish Stance Amid Gary Black's Q4 Warning
The news comes as Wedbush Securities analyst Dan Ives recently said that autonomous driving and AI present a $1 trillion market opportunity for Tesla. He also hailed ';Wartime CEO' Elon Musk, who recently shared an insight into his schedule, reiterating his commitment to the EV giant.
However, despite Tesla surpassing analyst delivery estimates, Black cautioned the share price surge, which coincided with Musk's $1 billion stock purchase. He predicted that Tesla would experience a decline in Q4 and should instead use excess cash for buybacks to keep the valuation in check. The investor's prediction was also shared by Gerber Kawasaki's co-founder Ross Gerber.
Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!
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