Tesla (TSLA) stock slid today despite a Piper Sandler analyst increasing their price target for the electric vehicle (EV) company’s shares. Five-star analyst Alexander Potter increased his price target for TSLA stock from $315 to $500 per share, representing a potential 17.23% upside. He did so while maintaining a Buy rating for the EV maker.
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Potter argues that Tesla has growth potential in 2025 thanks to its artificial intelligence (AI) business. He believes investors will be more willing to see a possible upside with real-world uses of Tesla’s AI products. This aligns with Elon Musk’s focus on developing Tesla as an AI company over its legacy carmaking endeavors.
What This Means for TSLA Stock
Despite the increased price target for TSLA shares, the stock is down 3.21% as of this writing. That will erase its 2.56% year-to-date increase if shares can’t rebound before markets close today. This drop is due to President Donald Trump’s promise to “end the Green New Deal” and “revoke the electric-vehicle mandate,” during his inaugural address last night.
However, the Piper Sandler analyst expected this type of movement. Potter said the first half of 2025 will be a choppy period for TSLA stock. Even so, he sees it as a top “buy-and-hold idea” for the year. Investors will get their next update on Tesla when it reports earnings after markets close on Jan. 29, 2025.
Is TSLA Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Tesla is Hold based on 13 Buy, 12 Hold, and nine Sell ratings over the last three months. With that comes an average price target of $329.63, a high of $515, and a low of $24.86. This represents a potential 20.51% downside for TSLA shares.
