Tesla Price Target Raised to $500 With Focus on AI and Robotics

Analysts highlight Tesla's potential in artificial intelligence and robotics, but caution about short-term uncertainties in the EV market.

Piper Sandler raised Tesla's price target from $315 to $500, citing its potential in AI and robotics, particularly the Optimus humanoid robot and neural-net-training-as-a-service.
Tesla's stock has surged approximately 70% since the November 2024 U.S. presidential election, amid speculation about regulatory benefits under President Trump's administration.
The firm predicts Tesla will deliver 1.96 million vehicles in 2025, an 11.4% increase from 2024, though uncertainties remain about demand and new product launches.
Analysts are shifting to a P/E-based valuation for Tesla, using a 120x FY26 earnings multiple, due to the difficulty of modeling revenue from emerging AI-driven products.
Tesla's long-term growth is expected to rely on advancements in full self-driving technology, autonomous ridesharing, and energy storage rather than its legacy EV business.