Piper Sandler: The potential of Tesla AI and Siasun Robot & Automation is seriously underestimated, with a target price of $500.

If the stock price of Tesla, Inc. ($TSLA) at $400 per share already covers the full value of its electric vehicle and energy business, then Optimus, autonomous taxis, and artificial intelligence are equivalent to the upside potential that investors can get for free - this is the latest view of Piper Sandler analyst Alexander Potter. Despite facing execution risks, he still maintains a target price of $500. According to a 20-year cash flow discounted model established by Piper Sandler, Tesla, Inc.'s existing 17 business segments - covering everything from electric vehicle manufacturing, energy storage solutions, supercharging networks to FSD autonomous driving software and car insurance - are sufficient to support a valuation benchmark of $400 per share. This means that the remaining value in the target price mainly reflects the potential upside of Optimus, autonomous taxis, and artificial intelligence-related services. The core logic of this report is that the market currently severely undervalues the valuation premium of Tesla, Inc. transitioning from a traditional manufacturing company to an AI infrastructure supplier. Analyst Potter believes that with Tesla, Inc.'s technological breakthroughs in the Siasun Robot & Automation field, Optimus and the accompanying "Inference-as-a-Service" business, their long-term value may eventually surpass the sum of all of Tesla, Inc.'s current core businesses, but he also warns that execution risks remain high in the short term. As of the time of writing, the stock closed up 3.89% on Monday, at $445, with a cumulative increase of over 13% in the past week, as investor optimism about artificial intelligence and autonomous driving continues to rise. At the same time, the latest developments in Tesla, Inc.'s macro strategic and technological implementation also support this optimistic outlook. In the field of autonomous driving, Tesla, Inc. is leveraging its large global fleet to accumulate vast amounts of real driving data, and the iteration speed of its FSD system is showing exponential growth. Especially with recent frequent international visits by Elon Musk, there is a general expectation that the FSD system is expected to make important breakthroughs in regulatory approval in the strategic market of China. On the hardware side, Tesla, Inc. has clarified its production schedule, planning to achieve the initial deployment of Optimus Siasun Robot & Automation in its own factories by the end of 2026, performing actual production tasks such as part handling, marking the official transition of humanoid Siasun Robot & Automation from the laboratory to industrial applications. Although there is still significant disagreement on Wall Street regarding the valuation of Tesla, Inc., with some more conservative institutions warning that its stock price fluctuations exhibit more "meme stock" characteristics, this report from Piper Sandler undoubtedly strengthens Tesla, Inc.'s narrative as a leader in AI. The analyst emphasizes that Tesla, Inc., with its strong capital strength, is able to raise significant funds for AI computing power and mass production of Siasun Robot & Automation without significantly diluting existing shareholder equity. In addition, according to the latest analyst report from Seeking Alpha, Tesla, Inc. currently has nearly 4 million vehicles with FSD capabilities on the road globally, with a total daily mileage of 30-40 million miles. Every mile of driving accumulates more real driving data, helping the company improve its artificial intelligence system faster.