In a new research note published on Thursday — and first obtained by PriceTarget — Piper Sandler encouraged investors to try Tesla’s Full Self-Driving (FSD) Version 14 and said the latest version is “probably already better” than the average American driver.
Since its release in October, the v14.1 series has received weekly updates that add new features and improve performance, as Tesla moves toward creating a car that feels “sentient,” in the words of CEO Elon Musk.
Piper Sandler hosted investors at Tesla‘s Fremont facility, where the latest version of the software was tested.
“Unsurprisingly, much of the conversation focused on FSD and Tesla‘s robotaxi efforts,” analyst Alexander Potter noted, adding that the firm thinks “it’s important for investors to try FSD v14.”
The analyst believes that “FSD is a truly impressive product that is (probably) already better at driving than the average American.”
According to Tesla, US owners using FSD experience just one crash per 4.92 million miles — contrasting with one crash per 700,000 miles for the average in the country.
Robotaxi Expansion
“A flawless robotaxi ride to the hotel reinforced our conviction in this statement,” Potter added.
Tesla is pushing forward toward full autonomy, with Musk claiming they are “a few months away from solving FSD Unsupervised.”
Although the company is already testing fully autonomous vehicles through its Robotaxi FSD, it remains cautious on safety.
Tesla‘s ride-hailing service currently operates in Austin — where it first launched in late June — and in California’s Bay Area.
Safety drivers are still required in the driver or passenger seat.
Musk has stated that he aims to remove safety drivers in Austin by the end of the year, a goal he reiterated during the company’s Annual Shareholder Meeting earlier this month.
Tesla is also preparing to expand the service into additional states, with job listings and official authorizations indicating upcoming launches in Florida, Nevada, Arizona, and others.
Stock Performance
Piper Sandler has a $500 price target on Tesla, which was reiterated on Thursday.
The target was raised from $400 to $500 on September 22, with Alexander Potter then saying that the company remained their “top idea for investing in autonomous vehicles and robotics.”
By then, the $500 target implied a 17.4% rise on the share price, based on the prior day’s close at $426.07.
Since then, the stock has been volatile.
After hitting a year-to-date high of $474.07 on November 3, the stock fell sharply, reaching a two-month low of $382.78 eleven days later, before closing at $404.35.
On Wednesday, Tesla‘s shares traded nearly flat at $403.99. Piper Sandler’s price target implies a 23.8% upside potential on the stock.
The firm has an Overweight rating on the stock.
