Electric vehicle (EV) manufacturer Tesla (NASDAQ: TSLA) has received a bullish outlook from Wall Street, with an analyst citing the company’s advances in autonomous driving.
Specifically, Stifel analyst Stephen Gengaro raised his Tesla price target to $508 from $483 while maintaining a buy rating. The new target implies a potential gain of about 25% from Tesla’s last closing price of $404.
Gengaro noted that robotaxi progress continues in both Austin and the Bay Area, with Tesla preparing to expand autonomous services to as many as 8–10 metropolitan areas by the end of 2025.
Management expects parts of Austin to deploy fully driverless robotaxis before year-end 2025, followed by expansion into Nevada, Florida, and Arizona.
He also highlighted the strong performance of Full Self-Driving Version 14 and upcoming releases that aim to add reasoning capabilities to improve real-time decision-making using Tesla’s 360-degree vision system.
At the same time, the analyst cautioned that Tesla may face a pull-forward of deliveries that could pressure fourth-quarter 2025 results. However, he added that the recently introduced Model Y Standard and Model 3 Standard, priced at $39,990 and $36,990, both offering more than 300 miles of range, should help soften the impact of the EV tax credit expiration.
Gengaro also pointed to CEO Elon Musk’s optimism about the long-term potential of the Optimus humanoid robot.
Notably, Tesla expects to showcase Optimus 3 prototypes in the first quarter of 2026 and scale production throughout the year. Musk is targeting a one-million-unit production line by the end of 2026, with far greater output planned for later generations.
Wall Street cautious on Tesla stock price
Meanwhile, other Wall Street analysts tracked by TipRanks have taken a more measured view of Tesla shares, with the consensus rating from 34 analysts remaining at Hold.
The average 12-month price target stands at $382.54, suggesting a potential decline of 5.39% from the last closing price. Notably, the highest target has reached $600 and the lowest sits at $190.05.
This wide range reflects ongoing debate about Tesla’s growth trajectory amid rising competition, pressure on profit margins, and uncertainty surrounding the timeline for major initiatives such as robotaxis and next-generation vehicles.
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