TD Cowen analyst Itay Michaeli increased his price target for Tesla (TSLA) stock by 36% to $509 from $374 and reiterated a Buy rating, citing a balanced setup in the third quarter and several other positives. The electric vehicle (EV) maker recently reported better-than-anticipated Q3 deliveries, as customers rushed to make purchases ahead of the expiration of the $7,500 federal EV tax credit.
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TD Cowen Sees Solid Upside Potential in TSLA Stock
Michaeli noted that TSLA stock traded well in Q3, driven by a significant Q3 delivery beat, the compensation proposal for CEO Elon Musk, and continued autonomous vehicle (AV) and artificial intelligence (AI) progress.
Additionally, Michaeli stated that the product goals outlined in the CEO compensation proposal boosted his confidence in Tesla’s long-term story, which is reflected in his increased price target. The analyst explained that he maintains a positive stance on TSLA stock, as he thinks that 2026 expectations remain “fairly muted,” given significant EV market pressures.
Based on Q3 deliveries and other recent data points and updates, Michaeli slightly raised his 2025 earnings per share (EPS) estimate, while also revising out-year estimates modestly higher.
It is worth noting that Michaeli’s new discounted cash flow (DCF)-based price target is based on an increased EBITDA terminal value multiple of 30x, up from 15x, reflecting added confidence in Tesla’s AV/full-self driving (FSD) deployment potential. The analyst highlighted that his target multiple reflects “scarcity value for AV deployment exposure.”
Is TSLA Stock a Buy, Sell, or Hold?
Given intense competition in the EV market, Wall Street has a Hold consensus rating on Tesla stock based on 14 Buys, 13 Holds, and nine Sell recommendations. The average TSLA stock price target of $352.94 indicates a 19% possible downside from current levels.
TSLA stock has jumped 25% over the past month, bringing the year-to-date rise to more than 7%.
