Tesla (TSLA) Stock Target Raised to $500 as Analyst Stays Bullish on AI Edge

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks in Focus on Wall Street. On September 22, Piper Sandler reiterated the stock as “Overweight” and raised its price target on the stock to $500 per share from $400.

The firm believes that Tesla is positioned for growth due to its lead in AI. This is despite Chinese competitors trying to copy its designs.

“We are boosting our price target to $500, following a trip to China. 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.I., these companies look to Tesla for guidance – not the other way around.”

According to the firm, this AI technology powers Tesla’s robo-taxi fleet and its Optimus humanoid robots—which are the two very businesses poised for growth over the next few years.

“At some point in the next year or so, we think investors will start focusing on the size of the FSD-equipped fleet, rather than the number of new deliveries sold into the fleet each quarter.”

Moreover, the company’s monetization of already sold vehicles could enhance the EV maker’s valuation as well.

“It’s true that the fleet size depends on continued sales, but there are millions of existing Tesla vehicles on the road that Tesla can monetize, regardless of new delivery trends.”

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

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