Tesla's long-term focus, position land it huge new price target bump
12/18/2024 05:18 PM
Tesla’s focus on sustainable energy and its disruption in various sectors, as well as its current position as a leader in those sectors, has landed it a huge new price target bump from a Wall Street firm.
Vijay Rakesh of Mizuho Securities has increased his Tesla price target by more than double, as it now lands at $515, up from $230. Rakesh also upgraded the shares to ‘Outperform’ from ‘Neutral.’
Tesla has been an industry leader and major disruptor in the automotive, energy, AI, autonomy, and robotics sectors by shaking up these sectors in various ways.
The company’s focus on these sectors and its position as a leader has put it in prime position to dominate various industries moving forward, especially as other companies and competitors will be playing catchup or partially ditching their efforts altogether.
Rakesh wrote in a note to investors (via Yahoo! Finance):
“We expect TSLA’s leadership across EVs, solar/battery storage, and charging infrastructure should allow the company to better weather the storm than less-established peers as the Trump administration removes subsidies for key end-markets. We also see less stringent regulation on autonomous vehicles (‘AVs’) as a key tailwind to TSLA’s ability to scale FSD/Robo-Taxi deployments, with our base case scenario implying significant long-term revenue from AV operations.”
Mizuho is also looking at a potential bull case for Tesla shares at $681 but this is reliant on Robotaxi deployments, solving Full Self-Driving, and more progress on Optimus and AI moving forward.
It is the second price target bump Tesla has received this week, as Dan Ives also pushed his outlook for the stock upward for the second time since the Presidential election in early November.
Ives, a Wedbush analyst, had a $400 price target but pushed it to $515 on Sunday.
Tesla shares were down nearly 9 percent today, but are still up over 77 percent on the year. All but two percent percent of the gains have come post-election.
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