Tesla’s focus on sustainable energy and disruption across sectors, combined with its current position as a leader in those sectors, has led to a huge new price target from the Wall Street firm.
Vijay Rakesh of Mizuho Securities more than doubled his price target for Tesla, now at $515, up from $230. Rakesh also upgraded the stock to ‘outperform’ from ‘neutral’.
Tesla has been an industry leader and major disruptor in the automotive, energy, artificial intelligence, autonomy and robotics sectors by disrupting these sectors in various ways.
The company’s focus on these sectors and its position as a leader has put it in a prime position to dominate various industries moving forward, especially as other companies and competitors will play catch-up or partially phase out their efforts altogether.
Rakesh wrote in a note to investors (via Yahoo! Finance):
“We expect TSLA’s leadership across electric vehicles, solar/battery storage, and charging infrastructure will allow the company to weather the storm better than its less established peers as the Trump administration rolls back subsidies from key end markets. We also see less stringent regulation on autonomous vehicles Driving (‘AVs’) represents a key enabler of TSLA’s ability to scale FSD/Robo-Taxi deployments, as our base case scenario indicates significant long-term revenue from autonomous vehicle operations.
Mizuho is also looking at a potential bull run for Tesla shares at $681, but that’s dependent on Robotaxi deployments, a full self-driving solution, and further progress on Optimus and AI moving forward.
This is the second price target hike Tesla has received this week, with Dan Ives also pushing his forecast for the stock higher for the second time since the presidential election in early November.
Ives, the Wedbush analyst, had a price target of $400, but pushed it to $515 on Sunday.
Tesla shares are down nearly 9 percent today, but are still up more than 77 percent on the year. All but 2% of the gains came after the election.
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