Tesla Wins Higher Price Target as AI Edge Expands

Tesla (TSLA, Financials) got a boost from Wall Street after Piper Sandler raised its price target to $500 a share, citing the company's advantage in artificial intelligence. The stock closed Monday at $436.64.

The firm said Chinese electric vehicle makers are advancing quickly but still look to Tesla for leadership in real-world AI. That includes the software behind Tesla's full self-driving fleet and its humanoid robot, Optimus two areas Piper expects to be major growth drivers over the next few years.

Analysts noted that investors may soon focus less on quarterly deliveries and more on the size of Tesla's installed fleet, which could unlock new revenue as the company monetizes vehicles already on the road.

Tesla shares are up about 48% year-to-date, supported by investor optimism around its AI roadmap even as competition in China intensifies. The company's next catalyst will likely be updates on its robo-taxi launch plans.