Tesla’s (NASDAQ: TSLA) stock price target has been raised by several Wall Street analysts, driven by the company’s expanding ventures in autonomous driving, robotics, and energy.
As of press time, the stock was up over 3%, trading at $446, and remains up more than 16% year-to-date.
Among the latest outlooks, Cantor Fitzgerald raised its TSLA price target from $355 to $510 per share, maintaining an ‘Overweight’ rating. This revision reflects the firm’s confidence in Tesla’s long-term prospects, especially with key production milestones on the horizon.
In an October 27 note, the firm’s Andres Sheppard highlighted upcoming product launches, including the Cybercab, Semi, and Optimus robots.
To this end, the expert expects volume production of the Cybercab, Semi, and Megapack 3 to begin in fiscal year 2026, with Optimus production slated for next year. These milestones are seen as pivotal for Tesla, reinforcing its position as a vertically integrated leader in energy and AI.
Additionally, the firm forecasts significant capital expenditures, estimating $9.2 billion for FY2025 and $12 billion for FY2026, as Tesla scales operations in robotics, autonomous driving, and energy storage.
Morgan Stanley bullish on TSLA stock price
Meanwhile, Morgan Stanley’s Adam Jonas made notable comments about Tesla’s future, calling the company’s advancements in autonomous driving a “historic turning point” for transportation.
He believes Tesla has solved the “robotaxi” challenge, likening it to the industrial revolution’s steam engine breakthrough. This marks a pivotal moment in the evolution of autonomous vehicles, with Tesla’s third-quarter results seen as a turning point in its technological journey.
A key point of discussion is CEO Elon Musk’s announcement that Tesla plans to operate vehicles without safety drivers in Austin within months, challenging conventional robotaxi thinking.
Morgan Stanley noted that Tesla’s Full Self-Driving (FSD) program, with 12% global penetration and higher adoption in North America, could generate $1.2 billion in annual revenue, significantly boosting profits. Additionally, Tesla’s broader network services, including FSD, charging, and maintenance, could add $160 per share to its valuation.
Finally, Jonas discussed Tesla’s expansive network of connected vehicles, which he referred to as an “ever-expanding distributed inference cloud.” With Tesla’s global fleet functioning as a network of computing units, this technology is set to enhance Tesla’s AI-driven services and solutions, creating new opportunities across various sectors of autonomous technology.
Musk compensation package controversy
Notably, the outlook comes as investor attention focuses on Musk’s proposed compensation package, which could cost the company up to $1 trillion amid shareholder scrutiny.
In a letter sent to investors on October 27, Tesla chair Robyn Denholm urged approval of the unprecedented plan, warning that failing to do so could result in Musk leaving the company.
The package includes 12 large stock option tranches tied to aggressive performance targets. Denholm emphasized that Musk’s leadership is critical to Tesla’s ongoing success across various sectors, including automotive, robotics, energy storage, and autonomous driving.
The letter comes as independent proxy advisers Glass Lewis and ISS have raised concerns, criticizing the plan as excessive and dilutive to shareholders. Despite this, Denholm emphasized that losing Musk’s leadership could have a significant impact on Tesla’s value.
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