Tesla shares (NASDAQ: TSLA) received a new synopsis today from one Wall Street firm that investors will love to hear as the stock continues a meteoric climb since the Presidential Election.
Baird analyst Ben Kallo continued the bullish sentiment that many analysts are pushing on the EV maker’s stock over the past month and a half as Tesla continues to gain value based on the catalysts it has moving forward with President-elect Donald Trump set to take the White House in January.
Kallo said in a note to investors on Tuesday that the company has “several upcoming potential catalysts” and that Baird “likes the stock long term.”
The note also came with a boosted price target of $480 from $280. Kallo also reiterated his “Outperform” rating on Tesla shares.
The analyst recommends that investors buy “particularly on pullbacks,” especially considering that the company has several things that could help the stock climb higher in the future.
Credit: Tesla
Kallo specifically mentions several things, including:
- The introduction of new vehicles will help increase volume
- Tesla is leveraging affordable models that are set to launch in the first half of 2025, as well as the Robotaxi fleet to bolster annual growth moving forward
- Removal of the EV tax credit by the Trump White House
- Although this would potentially be a negative across the board, it would be a positive for Tesla as it will hurt competitors more than them
- Production costs continue to decrease
- Tesla is profitable on every vehicle it builds, including Cybertruck, which reached a positive gross margin in less than one year
- Expansion into new markets
- Tesla is specifically targeting new Asian and South American markets
- Growth in the energy division
- Many forget Tesla is more than just a car company, and its performance as an energy provider in 2024 was better than ever
- Full Self-Driving approval in new markets
- Tesla hopes to launch FSD in China and Europe in the next year
- Tesla Optimus robots
- Tesla says it will begin deploying these robots in its factories considerably in the coming years
There are also some things that Kallo and Baird list as potential weaknesses, including the company’s valuation, potentially “lumpy” sales with new vehicle introductions, Robotaxi delays and accidents, which are commonly mentioned by mass media, and the potential that the removal of the EV tax credit could be a bigger negative than expected.
Tesla shares are down just over 1 percent at 10:20 a.m. on the East Coast, trading at around $474.30.
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