Electric vehicle manufacturer Tesla (NASDAQ: TSLA) has received a notable boost from Wall Street after Piper Sandler analyst Alex Potter raised his price target on the stock to $500, up from $400.
The revision follows Potter’s recent trip to China, where he assessed the competitive landscape among EV manufacturers. Notably, Tesla shares have been under pressure in recent months, weighed down by rising competition from lower-cost Chinese EV makers.
Potter noted that while Chinese automakers pose strong competition, Tesla remains the clear leader in AI and autonomous driving, with many rivals still looking to it for innovation, reinforcing its long-term advantage.
The analyst emphasized that Tesla’s valuation now hinges more on upcoming product and technology milestones than long-term earnings. The expected launch of Full Self-Driving (FSD) version 14 could be a key catalyst, reinforcing Tesla as Piper Sandler’s top pick in autonomous vehicles and robotics.
“We think the catalyst path matters more to the valuation than 2026 estimates. It now seems FSD v14 will be released any day; we think this will prompt a higher multiple,” Potter said.
Impact of Musk’s public appearance alongside Trump
Beyond analyst sentiment, Tesla has also drawn attention after CEO Elon Musk’s surprise public appearance alongside President Donald Trump at the memorial service for conservative activist Charlie Kirk.
The two were photographed sitting together and shaking hands, signaling a reconciliation after a very public fallout earlier this year.
To this end, TSLA shares rose about 2% in overnight trading, extending last week’s bullish momentum. As of press time, Tesla stock was valued at $426, up more than 2% in the last session and 0.65% over the past week.
The rift between Musk and Trump had emerged after the executive resigned from Trump’s Department of Government Efficiency (DOGE), criticizing a sweeping tax-and-spending package as fiscally irresponsible.
In response, Trump threatened to cut off federal contracts tied to Musk’s companies, sparking a bitter exchange of personal and political barbs. Their public reunion at the memorial marked the first sign of reconciliation since that dispute.
For investors, the warmth in relations could help ease perceived political risks for Tesla, particularly in areas tied to government contracts and regulatory oversight.
Featured image via Shutterstock
