Piper Sandler has reaffirmed its bullish outlook on Tesla (NASDAQ: TSLA), maintaining an ‘Overweight’ rating and a price target of $400 per share.
This target suggests a potential upside of about 17% from Tesla’s last closing price of $342.
The update follows an investor call featuring Jordan Giesige of The Limiting Factor, a commentator on battery technology.
Piper Sandler analyst Alexander Potter emphasized Tesla’s aggressive push toward vertical integration in its battery supply chain, setting it apart from competitors.
According to Potter, Tesla is the only major automaker attempting large-scale battery production without depending on China, a strategic move amid rising global supply chain instability.
He noted that Tesla’s in-house production of its 4680 battery cells shows almost no reliance on Chinese inputs.
The company plans to go even further by producing its cathode active materials, refining lithium, manufacturing anodes, coating electrodes, assembling battery cells, and integrating them into its electric vehicles, all within Tesla.
Despite some ongoing uncertainties, Piper Sandler sees Tesla’s strategy as a compelling long-term value proposition.
“No other U.S. entity can make similar claims. Success isn’t assured, and in the next 2+ years, there’s no way to insulate the U.S. supply chain from China… but at least Tesla has a plan,” Potter said.
Tesla’s mixed sales
The bullish stance comes even as Tesla’s performance remains mixed across key markets. In May 2025, new car sales in Spain dropped 29% year-over-year, with just 794 vehicles sold.
From January to May, sales declined 19% compared to the same period in 2024, despite a 72% jump in overall electrified vehicle sales in the country.
In contrast, Tesla’s sales in Norway surged 213% in May, driven by strong demand for the Model Y, Norway’s best-selling car for three consecutive years. Year-to-date, Tesla’s Norwegian sales are up 8.3% over 2024.
Tesla is also back in Wall Street’s spotlight, following CEO Elon Musk’s full return after completing a special government role in the Department of Government Efficiency. Some of Tesla’s recent challenges have been linked to Musk’s political views.
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