Tesla (TSLA) stock is rising in pre-market trading after a Robert W. Baird analyst upgrade and a 71% price target hike. Analyst Ben Kallo upgraded TSLA stock to a “Buy” rating from “Hold” and also raised his price target from $320 to $548, implying 31.5% upside potential from current levels.
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Kallo acknowledged that Tesla’s auto deliveries could decline again in 2025 and that its near-term fundamentals may remain choppy. Nonetheless, he expects Tesla stock to outperform over the long run, highlighting Tesla’s leadership in physical artificial intelligence (AI), including humanoid robots and autonomous driving technology.
Kallo Summarizes Tesla’s Key Catalysts
Kallo pointed to CEO Elon Musk’s new $1 trillion pay package as a key incentive designed to align leadership over the next decade. He also calculated the bull and bear scenarios for Tesla’s target price after accounting for dilution from Musk’s additional shares. Accordingly, the bull-case analysis translates to a 2035 share price of $3,000 and $1,400 in a bear scenario.
Furthermore, Kallo highlighted multiple drivers that could fuel Tesla’s stock performance, including the upcoming Optimus robot reveal, new robot models, expansion into global robotaxi markets, growth in its energy storage business, and shareholder approval of Musk’s compensation package.
All these factors have prompted Kallo to boost his outlook on Tesla stock and increase its price target to $548. His new price target values Tesla at 63x its projected 2029 EBITDA (earnings before interest, taxes, depreciation, and amortization).
Is Tesla a Good Stock to Buy?
Not all analysts share the same enthusiasm about Tesla’s long-term potential. On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 13 Holds, and eight Sell ratings. The average Tesla price target of $314 implies 24.7% downside potential from current levels. Meanwhile, TSLA stock has gained 3.2% so far this year.
