In a bold statement, Jefferies acknowledged that Tesla (TSLA) and its mission is “bigger than CEO Elon Musk.” While Musk is still an important figure, Jefferies believes Tesla’s size, product range, and long-term focus give it the power to succeed beyond Musk’s image. They added that Musk’s outside ventures have hurt his reputation more than Tesla’s. Meanwhile, Jefferies’ five-star-rated analyst Philippe Houchois has reiterated his Hold rating on TSLA stock at a price target of $300, suggesting over 7% growth rate.
Jefferies Sees Promise in Tesla, But Stays Measured
Houchois and his team from Jefferies cautioned that governance issues and Musk’s leadership style continue to contribute to stock volatility. Despite this, they remain optimistic about Tesla’s operating performance and long-term prospects. Earlier, Jefferies had characterized Tesla’s Q1 results as superficially weak but fundamentally resilient.
Interestingly, Jefferies believes Tesla’s real advantage lies in its ability to grow and scale, rather than having the most unique self-driving technology. They further highlight Tesla’s strength in efficient manufacturing and U.S.-based production as major drivers of its value.
Commenting on the company’s Robotaxi business, Jefferies estimates this segment could be worth anywhere from $200 billion to $1 trillion. For their sum-of-the-parts valuation, they used a middle estimate of $560 billion, equal to about $160 per share. Jefferies analysts also believe that Tesla’s return to a $1 trillion valuation shows investor confidence ahead of its Robotaxi launch in June. Notably, June could be a pivotal month for Tesla, as Tesla plans to launch a robotaxi pilot in Austin, Texas, using Model Y vehicles equipped with its Full Self-Driving (FSD) technology.
Tesla is also investing into stationary energy storage and humanoid robots, though Jefferies says it’s too soon to tell if the company will lead in these areas.
Is Tesla Stock Rated a Buy?
According to TipRanks, TSLA stock has received a Hold consensus rating, with 16 Buys, 10 Holds, and 11 Sells assigned in the last three months. The average Tesla share price target is $284.33, suggesting a potential upside of 1.42% from the current level.
Year-to-date, Tesla stock has declined by 30%.
