Tesla shares jumped 3.6% on Tuesday, closing over $479 per share, as another Wall Street analyst upgraded the company to Outperform from Neutral, citing tailwinds from President-elect Donald Trump’s administration.
The upgrade comes after positive news reports regarding Tesla’s and CEO Elon Musk’s connection to Trump. Vijay Rakesh of Mizuho Securities doubled his price target to $515 from $230, expecting TSLA to benefit from the incoming administration’s loosening of autonomous driving rules and repeal of consumer electric vehicle tax credits.
Mizuho believes Tesla has an edge over peers due to its leadership in EVs, solar/battery storage, and charging infrastructure. The company is also poised for significant revenue from autonomous vehicles (‘AVs’) with a base case scenario implying long-term growth.
Other analysts have made similar predictions, including Wedbush’s Dan Ives, who upgraded his price target to $515 after estimating the AI and autonomous opportunity worth at least $1 trillion alone for Tesla. The Trump administration’s recommendation to remove a National Highway Traffic Safety Administration (NHTSA) order requiring automakers to report crashes involving self-driving or autonomous driving systems is also seen as a positive move for Tesla, which has had to report over 1,500 crashes to NHTSA involving its FSD and Autopilot software.
Source: https://finance.yahoo.com/news/tesla-stock-jumps-to-another-high-as-mizuho-more-than-doubles-price-target-to-515-163030620.html