Piper Sandler Sees Tesla Stock Holding Strong - But Warns Robotaxi Accidents Could Trigger 'Violent Downside'

Tesla, Inc. (TSLA) stock may hold its recent gains and continue higher in the coming weeks, according to Piper Sandler. However, the firm also warns that any high-profile robotaxi mishap could trigger a sharp downside move.

According to The Fly, analyst Alexander Potter maintained an 'Overweight' rating on Tesla with a $400 price target, which implies an upside of more than 22% from the last close. 

Potter believes the recent sightings of driverless Teslas on the streets of Austin, Texas - and CEO Elon Musk's confirmation of the deployment - suggest that a“key component” of the firm's bullish thesis is beginning to play out.

Potter says Tesla's momentum will likely persist in the near term as investor focus sharpens on the company's full self-driving (FSD) roadmap. However, he cautioned that any high-profile robotaxi accident would likely be met with“violent downside,” potentially derailing the stock's rally.

On Tuesday, Musk revealed a tentative launch date for Tesla's long-awaited Robotaxi service: June 22.“We are being super paranoid about safety, so the date could shift,” he wrote on X.

Musk also stated that Tesla aims to deliver its first self-driving vehicle - driving itself from the end of the factory line directly to a customer's home - by June 28.

On Tuesday, Musk posted a video showing driverless Teslas navigating Austin roads with no safety drivers onboard, fueling anticipation for the launch. 

The company also plans to expand its robotaxi fleet to other cities after Austin.

Despite the rollout plans, retail investor sentiment has remained cautious. Many traders on Stocktwits remain skeptical about Tesla's timeline and the technology's readiness. 

Tesla's stock is down over 16% year-to-date, making it the worst performer among the so-called“Magnificent Seven” group of tech giants.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN11062025007385015968ID1109659077