Tesla stock climbed around 2.5% on Monday, extending last week’s strong rally as investors continued piling into the electric vehicle maker ahead of several potential catalysts tied to artificial intelligence and autonomous driving.
The stock has already gained nearly 10% over the past week.
The latest move came as Piper Sandler reiterated its Overweight rating on Tesla and maintained a $500 price target, implying roughly 14% upside from current levels.
The investment bank published an updated version of what it described as “The Definitive Guide to Investing in Tesla,” revisiting the framework it first introduced five years ago.
According to the report, Piper Sandler now values Tesla across 17 separate product categories, estimating the combined worth of those businesses at roughly $400 per share.
Importantly, that valuation excludes Tesla’s humanoid robotics project, Optimus.
The firm argued that investors buying Tesla around current levels are effectively receiving exposure to Optimus “for free,” with the full $500 target incorporating future upside from the robotics initiative alongside Tesla’s automotive, energy, and AI businesses.
Musk joins Trump’s China delegation
Investor focus also shifted toward China after reports that Chief Executive Elon Musk will join US President Donald Trump during a May 13–15 state visit to Beijing.
The delegation is expected to include several high-profile technology and business executives, including Jensen Huang, Tim Cook, Larry Fink and leaders from major US financial and industrial firms.
For Tesla, the key issue surrounding the visit remains regulatory approval for Full Self-Driving technology in China.
Musk previously told shareholders that Chinese regulators had indicated approval could arrive around February or March 2026, though that timeline has now slipped.
Tesla executives now reportedly expect approval sometime during the third quarter of 2026 after the earlier window passed without regulatory clearance.
The company has spent heavily building local infrastructure in China to comply with regulatory requirements surrounding data handling and autonomous driving systems.
China remains one of Tesla’s most important markets globally and is central to the company’s long-term ambitions for autonomous driving software monetization.
Safety milestone adds support
Tesla also received a boost last week after the National Highway Traffic Safety Administration said the 2026 Model Y became the first vehicle to pass the agency’s new advanced driver-assistance system tests.
The tests, which were recently added to the New Car Assessment Program, evaluate features such as pedestrian automatic emergency braking, lane-keeping assistance, blind-spot warning, and blind-spot intervention.
The updated standards apply to Model Y vehicles manufactured on or after November 12, 2025.
The milestone provided some positive momentum for Tesla as regulators continue separately investigating the company’s Full Self-Driving system over concerns tied to poor visibility conditions.
Safety ratings remain particularly important for Tesla given the increasing role advanced driver-assistance systems play in consumer purchasing decisions.
AI narrative still dominates Tesla valuation
The company’s long-term valuation is increasingly tied to what Musk has described as “physical AI,” including robotaxis, autonomous driving systems, and humanoid robots.
Tesla launched its robotaxi service in Austin, Texas, in June, but the rollout to additional cities has progressed more slowly than many investors initially expected.
That slower expansion has raised questions around scalability and the timeline for generating meaningful revenue from Tesla’s autonomous driving business.
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