Tesla Poised For 16% Upside, Piper Sandler Says After China Visit

Benzinga
2025.09.22 11:30
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Piper Sandler has raised its price target for Tesla Inc. (TSLA) to $500 after a visit to China, suggesting a potential 16% upside. The firm noted that Chinese EV manufacturers view Tesla as a key competitor and source of guidance. Despite strong delivery estimates, concerns about a potential decline in Q4 were raised, with suggestions for Tesla to focus on buybacks. Analysts highlight the significant market opportunity in autonomous driving and AI for Tesla, while the company's current trading price is $429.95.

Investment bank Piper Sandler has updated its Tesla Inc. TSLA price target to $500 following a visit to China, where it met officials from Li Auto Inc. LI, Stellantis NV STLA, owned Leapmotor and more.

Chinese Companies Look Towards Tesla For Guidance, Piper Sandler Says

In a new investor's note released by the bank, shared on the social media platform X on Sunday by Future Fund LLC‘s Gary Black, Piper Sandler said that it met with Chinese EV makers, saying that the "vertically-integrated Chinese OEMs may be Tesla's #1 competitive threat." The firm added that the OEMs have "arguably matched/surpassed" Tesla in terms of manufacturing, but look towards the EV giant for guidance on "real world A.I."

The bank also reported that a company it spoke to said that "without Tesla going from 0 to 1, we can't go 1 to 100." The bank also said it predicts Tesla will deliver 495k units in Q3 2025.

TSLA is currently trading for $429.95 during pre-market trading, according to Benzinga Pro data. The price target implies a potential 16% gain from current levels.

Dan Ives Bullish Stance Amid Gary Black's Q4 Warning

The news comes as Wedbush Securities analyst Dan Ives recently said that autonomous driving and AI present a $1 trillion market opportunity for Tesla. He also hailed ‘Wartime CEO' Elon Musk, who recently shared an insight into his schedule, reiterating his commitment to the EV giant.

However, despite Tesla surpassing analyst delivery estimates, Black cautioned the share price surge, which coincided with Musk's $1 billion stock purchase. He predicted that Tesla would experience a decline in Q4 and should instead use excess cash for buybacks to keep the valuation in check. The investor's prediction was also shared by Gerber Kawasaki's co-founder Ross Gerber.

Tesla scores well on Momentum and Growth metrics, while offering satisfactory Quality, but poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!

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