Tesla $TSLA has had its price target raised to $500 (up from $315) by Piper Sandler. They wrote: "We think investors are starting to appreciate Tesla's potential in ‘real-world’ A.I., and as a result, PMs are more willing to entertain upside scenarios. That said, the long-term narrative often takes a back seat when current-year estimates are falling, and in this regard, the outlook is highly uncertain. In our opinion, it's clear that Tesla's thesis will ultimately depend on new-age opportunities like Optimus robots and neural-net-training-as-a-service. The problem is, these nebulous revenue streams are difficult to incorporate into a DCF. Given this, we're shifting to a P/E-based valuation methodology. Our $500 price target is based on 120x FY26E EPS, which is in the top half of TSLA's historical trading range."
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