Piper Sandler Reiterates Overweight on Tesla (TSLA), Sets $400 Price Target

Tesla, Inc. (NASDAQ:TSLA) is a Must-Watch AI Stock on Wall Street. On August 29, Piper Sandler analyst Alexander Potter reiterated an Overweight rating on the stock with a $400.00 price target. The rating affirmation followed the firm’s tour and meeting with the company’s investor relations team.

The firm noted how Tesla’s robo taxi service has expanded to more than 170 square miles, while Waymo service area is 90 square miles in the same city. The company’s Full Self-Driving version 14 is set to arrive in September/October, enabling Tesla owners to use software that is similar to robo-taxis in Austin.

Tariff costs may rise in the second half of the year, impacting cost of goods sold estimated at “a couple thousand” USD per unit. Meanwhile, U.S. tax credit changes will lead to a “pull-forward” in demand for Tesla and competitors during the third quarter.

The firm further estimated that by 2026, Tesla’s Optimus humanoid robot is likely to move and stage parts within Tesla facilities.

• Tesla will own robo-taxis, but licensing, specialty fleets and consumers will all contribute

• There are many ownership models for FSD-equipped cars; the final mix is hard to predict

• Tariff costs will rise in 2H; the impact on COGS/unit should be a “couple thousand” USD

• U.S. tax credit changes are driving a “pull-forward” in Q3, both for Tesla and for peers

• Any post-Q3 demand hangover may be mitigated by sales of Tesla’s lower-cost vehicle

• Tesla’s guiding principle: defend free cash flow and protect self-funding status

• By this time in 2026, Optimus should be moving/staging parts within Tesla’s facilities

• Optimus can work 18 hours (~2 human shifts); at that rate, a $100k cost would be justified

• Note: we are making minor estimate revisions to reflect updates after Q2 earnings

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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