Piper Sandler’s analysts have reaffirmed Tesla as their top buy-and-hold stock idea, announcing an increase in its price target from $315 to $500. This firm conviction arises as investors either take notice of Tesla’s potential in practical AI applications or reap benefits from newfound consideration of optimistic outcomes.

In a recent report, Piper Sandler unveiled the analysis of over a dozen datasets specifically focusing on Tesla.

Despite uncertainties surrounding immediate financial results, particularly related to vehicle deliveries and automotive gross margins, the long-term outlook for Tesla remains encouraging.

“We anticipate Tesla will deliver 1.96 million units in 2025 (up from 1.79 million in 2024), with an additional 100,000 units arising from unknown vehicle models and another 70,000 units from the anticipated Cybertruck,” indicated Piper Sandler.

However, they did emphasize that this forecast comes with uncertainties, and potential downsides may not be visible until later reports.

On the gross margin front, Piper Sandler holds an optimistic view, expecting solid post-quarter performance as long as Tesla maintains its schedule for new product launches.

Looking further ahead, Piper Sandler revised its long-term delivery projections, predicting that Tesla could potentially reach a maximum of 4.6 million units per year by 2032.

The focus, they argue, will transition from merely launching new vehicles to popularizing the full self-driving software.

“We are now considering income from the licensing of FSD,” the analysts stated, with Tesla’s current businesses estimated just below $300 per share, including FSD.

Piper Sandler is moving towards a P/E-based evaluation approach, anchoring its $500 price target based on a 120x FY26 EPS.

To effectively evaluate Tesla’s financial trajectory, investors can utilize insightful resources like:

1. Earnings Calendar: Source of essential insights about Tesla’s upcoming earnings announcements to keep investors informed on quarterly performance and expectations.

2. Full Financials: A thorough examination of Tesla’s financial statements encompassing revenue, expenditures, and profit trends that assist in long-term investment evaluations.

These analytical tools can aid investors in tracking Tesla’s financial viability while assessing the implications of forthcoming product launches and strategic transformations.