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7 reasons one analyst says it's time to buy Tesla after its stock crash

7 reasons one analyst says it's time to buy Tesla after its stock crash

  • 19.03.2025 19:27
  • businessinsider.com
  • Keywords: Tesla, Cantor Fitzgerald

Analyst upgrades Tesla stock to "Overweight," citing future projects like Robotaxi and autonomous vehicles as growth drivers. The $425 price target suggests an 81% upside potential.

Tesla NewsTSLAsentiment_satisfied

Estimated market influence

Tesla

Tesla

Positivesentiment_satisfied
Analyst rating: Neutral

Analyst upgraded stock to 'Overweight', citing future projects like Robotaxi and autonomous vehicles as growth drivers. Predicts significant upside potential.

Cantor Fitzgerald

Positivesentiment_satisfied
Analyst rating: N/A

Upgraded Tesla's stock to 'Overweight' from 'Neutral', seeing an attractive entry point for investors with a long-term horizon.

Context

Analysis of Tesla Stock Upgrade and Market Implications

  • Stock Upgrade: Cantor Fitzgerald upgraded Tesla stock to "Overweight" from "Neutral," citing an attractive entry point for investors with a long-term horizon.

  • Price Target: Analyst Andres Sheppard maintained a $425 price target, representing an 81% upside potential from current levels (~$235.01).

Key Catalysts for Long-Term Growth

  1. Robotaxi Segment Launch (June 2025): Expected to drive significant growth and market expansion.
  2. Full Self-Driving (FSD) Rollout:
    • China (1Q25): FSD costs $8,000 per vehicle.
    • Europe (pending regulatory approval in 1H25).
  3. Lower-Priced Vehicle Launch (1H25): Expected initial price of ~$30,000 inclusive of tax credits.
  4. Optimus Bot Production (2026): High volume production expected to boost revenue.
  5. Semi Truck Production: Expected to begin in the second half of 2025 or early 2026.

Competitive Dynamics and Strategic Considerations

  • Autonomous Driving Comparison:
    • Waymo: >25M cumulative autonomous miles driven as of December 2024.
    • Tesla: >3B cumulative autonomous miles driven (on supervised Full Self-Driving).
  • Regulatory Support: Trump administration's plans to establish a regulatory framework for self-driving vehicles in the US could benefit Tesla.

Market Implications and Long-Term Effects

  • Investment Horizon: The analyst recommends a >12-month investment horizon, emphasizing comfort with volatility.
  • Revenue Growth Opportunities: Future revenue upside from autonomous vehicles and energy storage business.
  • Market Share Potential: Tesla's self-driving ambitions expected to quickly capture market share once Cybercab network launches in June 2025.

Strategic Insights

  • Operational Visit: Analyst's bullishness was reinforced after visiting Tesla's Gigafactory and AI data centers in Austin, Texas.
  • Headwinds and Volatility: Acknowledges near-term vehicle sales challenges but focuses on long-term growth drivers.

This analysis highlights Tesla's strategic focus on innovation, market expansion, and regulatory tailwinds, positioning it for sustained growth despite short-term volatility.