TLDR
Piper Sandler maintains $500 price target for Tesla after testing FSD v14 at Fremont Factory
Analysts say FSD v14 may already drive better than average human drivers after 75-minute demo
Tesla CEO Elon Musk teases v14.3 as “the last big piece of the puzzle”
FSD v14.2 resolves brake stabbing issues and shows improved hesitation problems
Price targets across Wall Street range from $131 to $600 per share
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Tesla stock drew renewed attention this week as Piper Sandler analysts completed an extensive tour of the Fremont Factory and came away impressed with the latest Full Self-Driving software. The firm kept its $500 price target intact following the visit.
Tesla, Inc., TSLA
The analysts spent over 75 minutes in focused discussions with Tesla leadership. They covered autonomy progress, chip development, and deployment strategies for the robotaxi program.
During the visit, the team took a ride in a vehicle equipped with FSD v14. Analyst Alexander Potter described the experience as “flawless” and concluded the software is “probably already better at driving than the average American.”
The demo highlighted improvements in perception and object handling. Ride smoothness also stood out during the robotaxi demonstration, according to the analysts.
Software Updates Show Rapid Progress
Tesla rolled out FSD v14.2 to Early Access Program members just hours before Musk hinted at what’s coming next. The v14.2 release addressed major pain points from the previous v14.1.x versions.
Brake stabbing issues that plagued earlier versions appear largely resolved. These problems occurred most frequently at intersections and four-way stops, where the vehicle would hesitate while traffic approached from other directions.
One driver tested v14.2 for 62 minutes without encountering the brake stabbing problem. The improvement suggests Tesla made real headway on this specific issue.
The driver monitoring system also appears more relaxed in v14.2. Tesla has stated it wants to allow texting while the system operates in coming months.
Musk teased that v14.3 will bring “the last big piece of the puzzle.” He didn’t provide a timeline for the release, though v14.1 only came out a few weeks ago.
Wall Street Divided on Valuation
Piper Sandler’s $500 target sits in the middle of a wide range of analyst opinions. Wedbush leads the bulls with a $600 price target.
HSBC takes the opposite view with a Reduce rating and $131 target. The firm points to a disconnect between Tesla’s earnings fundamentals and its market valuation.
TD Cowen maintains a Buy rating with a $509 target. The firm cited strong autonomous driving demonstrations in Austin and rapid software improvements as reasons for optimism.
Stifel recently raised its price target to $508 per share. The firm based its outlook on progress in the robotaxi program and FSD development.
The Piper Sandler team also discussed Tesla’s in-house chip initiatives during their visit. Battery storage business growth and the Optimus robot program came up in conversations with company leadership.
Analysts noted Tesla continues working on cost structures and capital expenditure planning. These factors will play a key role in future margin recovery.
