- Tesla’s (TSLA) stock rose nearly 3% to $231.41 after Cantor Fitzgerald upgraded it to ‘Overweight,’ citing a 45% YTD drop as an attractive entry point and a $425 price target driven by catalysts like the June 2025 Robotaxi launch and FSD expansion.
- Cantor highlights Tesla’s 3 billion autonomous miles (versus Waymo’s 25 million) and potential regulatory support under a Trump administration as key advantages, despite FY24 revenue of $97.7 billion slightly missing expectations.
- While tariffs and the possible loss of the EV tax credit may offset 2025 automotive growth, Cantor sees long-term upside from FSD, Robotaxi, energy storage, and Optimus Bots as central to Tesla’s investment case.
Tesla’s (TSLA) stock surged nearly 3% to $231.41 in early trading on Wednesday, buoyed by Cantor Fitzgerald’s upgrade to an ‘Overweight’ rating from ‘Neutral,’ a shift driven by the firm’s view that the stock’s 45% year-to-date decline presents an appealing entry point for investors. Cantor’s optimism hinges on Tesla’s robust pipeline of growth catalysts, including the June 2025 Robotaxi launch, the expansion of Full Self-Driving (FSD) technology into China and Europe, and the introduction of a lower-priced vehicle, alongside the deployment of Optimus Bots and the Semi Truck. Despite Tesla’s full-year 2024 revenue of $97.7 billion falling slightly short of expectations, Cantor remains confident in the company’s long-term trajectory, projecting a $425 price target – 83% implied upside from the ticker’s current level – fueled by revenue potential from FSD, Robotaxi services, energy storage, and robotics.
Cantor emphasizes Tesla’s commanding lead in autonomous driving data as a cornerstone of its bullish outlook, noting that Tesla’s supervised FSD system has logged over 3 billion cumulative autonomous miles as of January 2025, dwarfing Waymo’s 25 million miles reported through December 2024. This data advantage positions Tesla to capitalize on the growing self-driving market, particularly if regulatory tailwinds materialize under a Trump administration that could establish a federal framework for autonomous vehicles, an outcome Cantor views as a significant boon for Tesla. However, the firm acknowledges near-term challenges, including tariffs and the possible elimination of the EV tax credit, which could temper the automotive segment’s anticipated return to growth in 2025, though these headwinds are not seen as derailing Tesla’s broader ambitions.
The upgrade reflects a nuanced assessment of Tesla’s evolving role in the electric vehicle and technology sectors, balancing immediate risks with transformative opportunities. While the automotive business navigates potential policy shifts, Cantor sees Tesla’s diversification into AI-driven ventures – such as Robotaxi and Optimus Bots – as pivotal to unlocking sustained value. With shares rebounding from a steep selloff, the firm’s analysis suggests that Tesla’s innovative edge and strategic initiatives could propel it past industry hurdles, reinforcing its status as a leader in both transportation and cutting-edge technology.
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