Summary
- Piper Sandler advises investors to buy Tesla shares due to the company possibly solving the self-driving puzzle
- Tesla’s release of Full Self-Driving version 12.5 is the main focus, with positive reviews so far
- Analysts acknowledge Tesla’s history of over-promising but believe this time may be different
- The upcoming Robotaxi event could be a significant moment for Tesla, showcasing a fully self-driving car model
- Piper Sandler anticipates a potential rise in Full Self-Driving subscription prices to $500 a month, which could bring more value to investors.
Article
Piper Sandler is urging investors to purchase Tesla shares, confident that the company may have finally solved the self-driving puzzle. The release of Full Self-Driving version 12.5 is the main focus of their note, with positive reviews highlighting the new features. Despite Tesla’s history of over-promising on self-driving capabilities, Piper Sandler believes this time it may be different.
Acknowledging Tesla’s past failures to meet deadlines, the analysts at Piper Sandler are optimistic about the potential for full autonomy by the end of this year. They point to the positive reception of the latest FSD update as a sign of progress. The upcoming Robotaxi event, delayed to October 10, could be a significant moment for Tesla as it aims to unveil a fully self-driving car model that may be available as soon as next year.
In anticipation of Tesla’s technology advancements, Piper Sandler speculates on the potential rise of Full Self-Driving subscription prices. They believe that as Tesla’s tech improves, the current $99 a month fee could increase to $500 a month, providing more value to investors. CEO Elon Musk discussed FSD capabilities during the Q2 Earnings Call, hinting at the possibility of the entire Tesla fleet becoming active for autonomous driving.
Tesla’s stock has seen a 5 percent increase following Piper Sandler’s recommendation to buy shares. The firm’s confidence in Tesla’s self-driving capabilities and future potential is driving investor interest. With the anticipation of full autonomy and the development of a ride-sharing model, Tesla’s stock is likely to continue to attract attention from investors seeking to capitalize on the company’s innovative technology and vision.
Overall, Piper Sandler’s bullish outlook on Tesla’s self-driving technology and the potential for a fully autonomous vehicle in the near future is influencing investor sentiment. The positive reviews of Full Self-Driving version 12.5 and the upcoming Robotaxi event are seen as indicators of Tesla’s progress in the autonomous driving space. With CEO Elon Musk’s ambitious goals and the firm’s belief in Tesla’s ability to revolutionize the transportation industry, investors are advised to consider the long-term growth potential of Tesla shares in light of these developments.
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