New Street Research analysts upgraded Tesla (NASDAQ:TSLA) from Neutral to Buy, raising the price target to $460 on the stock. The shift reflects renewed confidence in Tesla’s ability to drive growth through the launch of lower-cost models and stabilization of gross margins as cost reductions keep pace with price adjustments.
Tesla’s advancements in Full Self-Driving (FSD) technology are gaining momentum, with the company potentially on the verge of introducing partially unsupervised FSD capabilities and pilot robotaxi fleets later this year. While large-scale deployment remains a challenging and long-term objective, progress toward this vision could further bolster Tesla’s valuation. In a best-case scenario, achieving dominance in the robotaxi market could push Tesla’s market cap to an estimated $4.7 trillion by 2030. Though this outcome is far from guaranteed, even incremental steps in this direction support additional upside to Tesla’s stock.
Short-term uncertainties, including fluctuating demand and the timing of new model releases, may create volatility. However, these conditions could present opportunities for long-term investors to build positions in anticipation of Tesla’s broader strategic goals.