Cantor Fitzgerald suggests that investors turning away from Tesla might be overlooking the broader picture. The well-known Wall Street firm has lifted its stance on Tesla’s stock from neutral to overweight while maintaining a $425 price target. This projection signifies a potential increase of 88.6%. Despite the fact that Tesla shares have tumbled 44% this year—partly because of concerns about CEO Elon Musk’s expanding role in U.S. government affairs and the growing global competition—analyst Andres Sheppard sees great promise in Tesla’s recent drop in stock price.
“We view the recent downturn as an appealing chance for investors who plan to hold for more than 12 months and are comfortable with some volatility,” he explained. Upcoming positive developments for Tesla, highlighted by Sheppard, include the launch of the Robotaxi segment, an upcoming lower-cost vehicle slated for release in the first half of this year, and the expansion of full self-driving capabilities in China and Europe. “Overall, we remain optimistic following our factory visit and in light of the recent market dip and Tesla’s underperformance,” the analyst remarked.
“We anticipate that future revenue from Full Self-Driving (FSD), Robotaxi, Energy Storage & Deployment, and the Optimus Bots will be essential to Tesla’s long-term vision.” Specifically, Sheppard is enthusiastic about Tesla’s prospects in the U.S. autonomous ride-sharing market and thinks the company could rapidly gain market share once the cybercab is introduced.
“During our visit, we got to test-drive Tesla’s newest FSD version (13.2.8) and are encouraged by its progress as the robotaxi segment nears commercialization,” he noted. “Moreover, it’s important to recall that President Trump’s administration previously talked about setting up a federal framework for self-driving vehicles in the U.S. If this comes to pass, Tesla could be a major winner,” he added. Following this upgrade, Tesla shares saw a more than 2% jump in premarket trading.
