Tesla (TSLA) shares slipped on Thursday and finished at $395.23, down 2.17%, after an initial surge earlier in the day. The jump came as AI stocks gained strength following Nvidia’s (NVDA) strong earnings report, along with optimism sparked by comments from top Piper Sandler analyst Alexander Potter.
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Potter, a 5-star analyst, kept his Overweight rating and $500 price target on Tesla after hosting an investor meeting at the company’s Fremont site. His target implies about 26% upside from current levels. Potter said the progress seen in the newest FSD version is real and could support stronger long-term revenue from autonomous driving. He also said the software now feels “already better at driving than the average American,” supporting his positive view.
Analyst Highlights Tesla’s Scale and AI Plans
Potter said Tesla has a key advantage because it can send software updates to millions of cars already on the road. In his view, this allows the company to move faster than rivals as it works toward a wider robotaxi rollout. He believes this scale could help Tesla reach commercial use sooner than many expect.
He added that much of the investor discussion centered on autonomy and future robotaxi plans. According to Potter, the gap between Tesla’s goals and its real-world performance is narrowing, which he sees as encouraging.
Potter also noted that Tesla is building more than a car business. The company is designing its own chips, expanding energy storage, and testing the Optimus robot. To him, these steps show Tesla is aiming to grow into a broader AI and automation company, rather than relying only on vehicle sales.
Is Tesla Stock a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 10 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 16.5% rally in its share price over the past year, the average TSLA price target of $384.14 per share implies 2.81% downside risk.
