Tesla stock (TSLA) climbed early Friday after new influx of optimism from Wall Street. Baird upgraded the shares to Buy and hiked its price target by 71%, while Goldman Sachs (GS) raised its own target, citing stronger-than-expected deliveries.
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Baird analyst Ben Kallo was the most aggressive. He set his new target at $548, up from $320, and pointed to what he called a coming “physical AI inflection.” In his view, Tesla is about to enter a new era powered not just by cars, but by self-driving taxis, humanoid robots, and a rapidly growing energy business.
Goldman analyst Mark Delaney was more cautious. He lifted his price target from $300 to $395 but kept his Hold rating. Even so, Delaney expects Tesla to deliver 455,000 cars in the third quarter, which would top consensus estimates of 445,000. Stronger U.S. EV sales in September, boosted by customers rushing to capture the federal tax credit before it expires, are a big reason why.
Tesla Stock Reacts to New Targets
Tesla stock was trading at $421.40 in premarket, up about 1.1%. This followed a run of seven straight winning sessions that added nearly 23% to its market value. The latest gains put Tesla close to a key resistance level of $440, which traders see as the next real test.
The upgrades come at a time when Tesla is already enjoying a burst of good news. CEO Elon Musk disclosed a $1 billion stock purchase earlier this week, the company appears ready to expand its robo-taxi service from Austin to Las Vegas, and the Federal Reserve’s rate cut has lowered the cost of auto financing. Each factor adds fuel to the rally.
However, not everyone is convinced the surge can last. Tesla’s stock is now trading well above the average Wall Street price target of $314, which means analysts as a group expect downside. Only about 45% of analysts rate the stock a Buy, compared with 55% for the broader S&P 500.
The Case for Tesla’s Next Chapter
Baird’s Kallo sees a very different story unfolding. He argues Tesla is sitting on a stack of potential breakthroughs, from AI-trained robots like Optimus to its robo-taxi fleet, which he believes could redefine transportation economics. In his words, “the road ahead is chock-full of catalysts.”
The idea is that Tesla is no longer just a car company. Instead, it is on the brink of turning its AI expertise into real-world products that could stretch well beyond vehicles. This “physical AI revolution” is why Kallo is willing to put such a high valuation on Tesla today.
Whether those catalysts materialize is the big question. Tesla still faces stiff competition from Chinese EV makers, uneven delivery growth, and questions about execution. But if the company delivers on even part of its AI promise, analysts like Kallo believe the stock could leave today’s price levels behind.
Is Tesla Stock a Buy, Hold, or Sell?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 13 Buys, 13 Holds, and eight Sells. The average TSLA price target of $314 implies a downside potential of 24.7% from current levels.
