Piper Sandler analyst Alexander Potter stated that Tesla Inc. has effectively achieved Level 4 autonomy, citing the company's rollout of Full Self-Driving subscriptions, expansion of its robotaxi service, efforts to secure permits for robotaxi infrastructure, and plans to build the Cybercab without a steering wheel or pedals. Potter noted that uncertainty surrounding Tesla's FSD software is compounded by the lack of universally accepted data for directly comparing metrics such as disengagements and crashes. The analyst added that a trip in April during which his Tesla drove him from Missoula, Montana, to Minneapolis further strengthened his conviction on the autonomy claim. Piper Sandler maintains an Overweight rating on Tesla stock with a $500 price target. Level 4 autonomy refers to a high level of self-driving capability in which a vehicle can operate without human intervention under specific conditions or within a defined area.
Piper Sandler Cites FSD Rollout and Robotaxi Infrastructure
Potter cited the company's rollout of FSD subscriptions, expansion of its robotaxi service, efforts to secure permits for robotaxi infrastructure, and plans to build the Cybercab without a steering wheel or pedals as evidence for Tesla's Level 4 autonomy status. According to TheFly, Piper Sandler's $500 price target implies an upside potential of nearly 25% from Tuesday's closing price. Potter noted that skeptics often cite the greater number of robotaxis deployed by Alphabet Inc.'s Waymo.
Tesla Expands FSD Supervised to Denmark
Tesla has been expanding the availability of FSD Supervised in Europe, adding a fourth country to the list after gaining approval in Denmark on Tuesday. Tesla's FSD Supervised was previously available in the Netherlands, Lithuania, and Estonia. The company claims that FSD Supervised is seven times safer when engaged than a human driver. Tesla states that more than 11 billion miles have been driven using the technology. Apart from the four European countries, Tesla's FSD Supervised is currently available in the U.S., Canada, China, Mexico, Puerto Rico, Australia, New Zealand, and South Korea.
JPMorgan Raises Price Target to $475 and Upgrades Rating
JPMorgan highlighted Tesla's advantage over competitors in a note last week, citing its industrial-scale manufacturing footprint, vertically integrated hardware and software ecosystem, and rapid pace of technological development. The firm argued that Tesla sits at the forefront of physical AI and is beginning to address entirely new, largely untapped markets. JPMorgan raised its price target for Tesla to $475 from $145 and upgraded the stock to Neutral from Underweight. The firm forecasts an earnings inflection point for Tesla in 2028, followed by roughly 50% annual earnings growth through 2030 and beyond.
Waymo Operates 3,700 Robotaxis Across 10 U.S. Cities
Waymo's robotaxis are operational in 10 U.S. cities, with 21 more in the pipeline. The company states that its robotaxis have driven for more than 200 million miles, and currently has more than 3,700 robotaxis in service. Waymo announced the launch of its sixth-generation robotaxis in February this year, with the aim of reducing costs while maintaining its safety standards.
FAQ
What did Piper Sandler analyst Alexander Potter say about Tesla's autonomy level?
Alexander Potter stated that Tesla has effectively achieved Level 4 autonomy, citing the company's rollout of FSD subscriptions, expansion of its robotaxi service, efforts to secure permits for robotaxi infrastructure, and plans to build the Cybercab without a steering wheel or pedals.
What is Piper Sandler's price target for Tesla stock?
Piper Sandler has an Overweight rating on Tesla stock with a $500 price target, implying an upside potential of nearly 25% from Tuesday's closing price according to TheFly.
How many countries in Europe now have Tesla's FSD Supervised available?
Tesla's FSD Supervised is available in four European countries: Denmark, the Netherlands, Lithuania, and Estonia, after gaining approval in Denmark on Tuesday.
