Tesla Surges to Second in Trading Volume as Analysts Hike Targets on AI Edge Over Chinese Rivals

On September 22, 2025, , securing the second-highest trading volume in the market. This momentum followed a price target hike to $500 by Piper Sandler analyst Alexander Potter, who highlighted Tesla’s leadership in AI-enabled infrastructure over Chinese EV rivals despite their assembly advantages. Analysts emphasized Tesla’s Full Self-Driving (FSD) advancements and a $1 billion share repurchase by CEO as catalysts for the rally.

Recent strategic shifts toward software monetization and energy storage underscored investor optimism. Tesla’s energy segment, , emerged as a stabilizing force amid automotive revenue declines. However, regulatory hurdles for its robotaxi expansion—particularly in California—cast uncertainty. State officials noted Tesla had not applied for necessary permits, instead opting for limited, invitation-only trips under limousine-style licenses, raising questions about scalability.

Analysts remain divided on Tesla’s valuation. While bullish bets hinge on AI-driven innovation and robotaxi commercialization, concerns persist over margin pressures from aggressive competition and pricing strategies. , though near-term execution risks remain critical.

A backtest of Tesla’s performance since 2020, using equal-weighted position sizing and a $1 million capital base, , . The strategy incorporated transaction costs and rebalanced monthly, with Tesla’s energy and software segments driving most of the outperformance.