CFRA has increased its price target for Tesla Inc. (NASDAQ: TSLA) to $560 from $450, reiterating its Buy rating, citing key benefits Tesla may accrue from recent regulatory developments.

Key Highlights:

Upside Potential:The new target reflects a 16% upside from Tesla’s Tuesday close.

EPS Estimates Boosted:

2025 EPS: Revised from $3.0 to $3.10.
2026 EPS: Revised from $3.75 to $4.0.

Cancellation of Federal EV Tax Credits:Tesla is expected to gain a competitive advantage as federal tax credits are canceled for EV manufacturers. This is likely to impact competitors more, increasing Tesla’s market share and revenue opportunities.

Regulatory Credits:Tesla’s earnings may benefit from selling California Zero-Emission Vehicle (ZEV) credits, historically a significant driver of profitability.

Political Backdrop:

Elon Musk’s Role: Expected to play an influential part in Donald Trump’s administration, potentially expediting Tesla’s autonomous vehicle regulatory approvals.
Market Reaction: Tesla’s valuation surged post the 2024 election results.

Supporting Insights:

API: Price Target Summary: Explore Tesla’s historical price targets and market sentiment. View details.
API: Revenue Product Segmentation: Analyze Tesla’s revenue from regulatory credits compared to vehicle sales. Learn more.