Investor's Corner
Tesla stock among biggest potential winners over the next year: analysts
Tesla (NASDAQ: TSLA) stock is just one of eight companies poised for a rally over the next twelve months, according to analysts who see major upside for some of 2021’s slowest movers.
Tesla, along with Penn National Gaming, Etsy, Mosaic, Mohawk Industries, Under Armour, Enphase Energy, and Freeport-McMoRan, is one of the stocks that has not had a great start to 2021 and has suffered a significant slide in comparison to the stock’s 52-week high. A report from Investors.com says that Tesla is poised for a big 52-week stretch as the automaker could hit its stride through major product developments over the next year that should provide a substantial boost to the company’s stock.
Tesla stock has not performed well in 2021, down 14.28% on the year at the time of writing. Interestingly, Tesla’s meteoric rise in 2020 still puts the automaker’s stock at 214.52% in the black over the past 52 weeks. Tesla shares exploded last year even though the COVID-19 pandemic struck. Despite last year being extremely tough for many companies, Tesla continued to report growth, profitability, an increasing adoption of electrification.
2021 hasn’t told the same story, unfortunately. Although Tesla has proven growth and profitability for seven consecutive quarters, released new, groundbreaking products like the 4680 battery and the Model S Plaid, the stock hasn’t been affected much for some reason. At least not in the positive direction.
But now, analysts are calling for Tesla to have a successful second half to 2021, and the momentum could continue into the first half of 2022. Shares are down 31% currently since its 52-week and record high of $900.40 a share that was reached in early 2021. Regardless, the shares are only down less than 15% on the year, and analysts expect the stock to hit an upside of 5% in one year, giving it a price of $654.03 per share.
-->While this sounds low, and many Tesla investors believe the stock could reach numbers as high as $700 or $800 if the company can achieve one million deliveries or production units this year thanks to two new production facilities, analysts have a reason for their prediction.
Investors.com says:
“No, that’s not a whopping gain for an S&P 500 stock that dominated in 2020. But simply seeing the stock move higher would be a welcome change. Additionally, analysts think fundamentals back up their target. Tesla’s profit is expected to jump more than 45% just this year to $6.68 a share. Profit growth is propping up Tesla’s still decent 75 IBD Composite Rating.”
Unfortunately, Tesla stock has lagged over the first six months of the year, plagued by media coverage that hasn’t necessarily told the most candid stories regarding the company. Everything from Teslas being banned on Chinese government bases to potential brake problems in China to a six-month delay at the German facility known as Giga Berlin have halted Tesla’s potential growth on Wall Street. Many of these claims have been disproven, yet the automaker hasn’t been able to rebound on Wall Street, not recovering to its record highs.
Despite this, Tesla is still the most valuable automaker on the planet and the ninth-most valuable company in the world. With a market cap of $604.91 billion, Tesla leads Toyota, the thirty-fifth most valuable company globally, with a market cap of $250.58 billion.
-->Disclosure: Joey Klender is a TSLA Shareholder.
Investor's Corner
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.
Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however.
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.
With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling.
Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot.
“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries.
-->“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
-->Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
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