Shares of Tesla (TSLA +2.40%) traded 4% higher today, as of 12:48 p.m. ET. Not only were tech stocks rebounding, but an analyst also issued a new research report on the company Wednesday morning.
Attractive catalysts ahead
Cantor Fitzgerald analyst Andres Sheppard upgraded Tesla from a neutral rating to overweight and maintained his $425 price target. With shares down significantly from just a few months ago, Sheppard sees several "upcoming material catalysts."
Among these are the launch of the robotaxi division later this year, growth of full self-driving in China and Europe, and a new vehicle priced more affordably, as well the potential launch of Optimus robots, which can supposedly complete household chores.
NASDAQ: TSLA
Key Data Points
"Waymo's vehicles have reported [more than 25 million] cumulative autonomous miles driven on public roadways as of 12/2024. TSLA, on the other hand, has reported [more than 3 billion] cumulative autonomous miles driven (on supervised Full Self-Driving FSD), as of January 2025," Sheppard wrote in his research note, referring to Alphabet's Waymo segment.
Sheppard acknowledged that Tesla could feel some pressure from President Trump's tariffs and if the electric-vehicle tax credit is removed. But he also sees potential regulatory benefits if the Trump administration creates federal rules for autonomous vehicles.
A battleground stock
Tesla has become a battleground stock on Wall Street, with analysts varying significantly in their opinions of the company's future. There is certainly a lot to like about its prospects, given how much it is investing in artificial intelligence, self-driving vehicles, and robots. However, the stock still trades at 86 times forward earnings, and the market still may have some hurdles to clear, so I find the entry point unattractive right now.
