Piper Sandler on Tesla (TSLA): 'Upsized Capex Outlook Offsets Otherwise Encouraging Q1'

Piper Sandler analyst Alexander Potter reiterated an Overweight rating and $500.00 price target on Tesla (NASDAQ: TSLA).

The analyst commened: "After-hours Stalemate: Upsized Capex Outlook Offsets Otherwise Encouraging Q1; Here's the basic takeaway from tonight's Q1 results: we think TSLA would be moving higher after-hours, instead of trading sideways, if not for a $5B increase in the 2026 capex outlook. The previous outlook (of $20B) was already around 2x higher than Tesla's previous peak, and the new outlook (of $25B) illuminates the scale of Tesla's ambition. Since Q1 capex was only $2.49B, Tesla's updated guidance implies strongly negative free cash flow for the rest of 2026. On the plus side: A.I. investments are bearing fruit, with a surprisingly large q/q jump in FSD software subscriptions. While rebounding car demand is also positive, we think the uptick in FSD subscriptions represents the single most encouraging development in Q1. We reiterate our Overweight rating and $500 price target."

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $387.51 yesterday.

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