JPMorgan upgraded Tesla (NASDAQ: TSLA) from ‘Neutral’ to ‘Underweight’ on Friday, June 5, raising its Tesla stock price target from $145 to $475.
The investment bank noted that the automaker is at the forefront of physical artificial intelligence (AI), now also entering what it called ‘uncharted’ addressable markets.
One of Tesla’s key advantages, analyst Rajat Gupta argued, is its industrial level scale, coupled with unmatched vertical integration across hardware and software products. Accordingly, Gupta believes Tesla shares are somewhat under-appreciated, and he sees up to 50% annual growth rate through 2030 and beyond.
“TSLA is at the forefront of physical Al, entering uncharted TAMs, and their ability to execute will be key to accelerating adoption and increasing the size of these TAMs themselves… We believe this aspect, while largely known at a high-level, is still somewhat under-appreciated and misunderstood, for the sheer starting-point advantage it brings,” Gupta wrote.
Likewise, the bank projects Tesla’s revenue will reach $203 billion by 2030, with robotaxi revenue, Optimus sales, and full-self driving (FSD) licensing accounting for roughly half of it. Furthermore, earnings per share (EPS) are expected to reach $7.5 in the same period, while free cash flow is not expected to turn positive before 2029.
Tesla stock growth is limited, Erste Group says
Tesla gets another positive revision from Erste Group, which upgraded the company from ‘Sell’ to ‘Hold.’ The company, however, offered no new Tesla share price target.
Analyst Hans Engel said that Tesla’s sales and profits will increase this year thanks to new products, but he also added that the stock’s high valuation limits the stock price growth potential.
“On a positive note, the sales trend has improved and the operating margin has also risen. The Group’s sales and profits will increase this year, supported by new products. However, the very high valuation of the stock based on the P/E ratio severely limits the further potential for stock price growth,” Engel wrote.
Tesla stock price target 2027
Tesla ratings are still a mixed bag, according to Wall Street notes that have come out in the past three months. As the latest TipRanks data suggests, TSLA shares are a ‘Moderate Buy,’ with 12 ‘Buy,’ 13 ‘Hold,’ and four ‘Sell’ calls.
The average 2027 Tesla share price target sits at $404 according to the same data, which suggests a 3.3% downside from the current levels.
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