Investor's Corner
Oppenheimer raises Tesla (TSLA) price target to $418 amid Q4’s positive Model 3 outlook
Wall Street’s sentiments towards Tesla (NASDAQ:TSLA) continues to get more positive, with Oppenheimer analyst Colin Rusch reiterating an “Outperform” rating on the company while raising his price target to $418 per share. Oppenheimer’s update comes amidst Tesla’s ongoing rally, which features the stock nearing levels close to its 52-week high of $387.46.
In a recent note to clients, Rusch stated that the drama surrounding Tesla and its CEO over the past few months seems to be all but over. This, according to the Wall Street analyst, places Tesla’s improving fundamentals front and center. Pushed by an even more optimized Model 3 ramp and weak competition from rival carmakers, Rusch notes that the next quarters could prove to be even better for the electric car maker.
“After a drama-filled fall that concluded with a settlement with SEC and a new board chair, we believe TSLA is enjoying improving fundamentals based on increasingly efficient manufacturing, strong ASPs leading to better than expected cash flow, as well as slow and disappointing competition entering the market for EV/ PHEVs,” Rusch said.
The Oppenheimer analyst notes that Tesla seems poised to top Wall Street estimates for 66,000 Model 3 production in the fourth quarter. Rusch also stated that Model 3 gross margins might potentially rise into the low 20% range this Q4.
“We believe as TSLA delivers steady cash flow, a new group of investors will begin taking positions, helping drive shares higher. We are looking to solid Model 3 deliveries and GM plus announcement of China factory financing as catalysts into early 2019,” he said.
Oppenheimer’s Outperform rating and $418 price target on Tesla stock seems to have fostered positive sentiment among the company’s investors. As of writing, Tesla shares are largely maintaining their gains, trading +0.20% at $367.50 per share.
OPPENHEIMER : "After a drama-filled fall .. we believe TSLA is enjoying improving fundamentals based on increasingly efficient manufacturing, strong ASPs leading to better than expected cash flow, as well as slow and disappointing competition .."
Price Target: $418 $TSLA #Tesla pic.twitter.com/i0BOb3Ci24
— vincent (@vincent13031925) December 12, 2018
Tesla has received several votes of confidence from Wall Street recently. This month alone, the company received a price target of $420 per share from CFRA, an independent investment research company, as well as a “Buy” rating and $450 price target from Jefferies Financial Group. Piper Jaffray further noted that if Tesla maintains its momentum, the company could very well find itself within striking distance of a short squeeze. All of these firms have mentioned Tesla’s improving fundamentals as a driver for their optimistic outlook on the electric car maker.
Tesla’s core businesses are expected to see a notable improvement in the coming quarters, with Elon Musk stating that the company would be focusing on the introduction of projects like the Model Y SUV and the Tesla pickup truck, as well as the wide rollout of products like the Solar Roof tiles. The Model 3’s entrance into the international markets is also expected to bode well for the company.
In a way, the current optimism surrounding Tesla’s stock could be summarized by the comments of Pierre Ferragu of New Street Research, who recently took a tour of the Fremont factory. In a note to the firm’s clients, Ferragu described Tesla’s Model 3 ramp as a learning experience for the company — one which bodes well for Tesla’s future endeavors.
“By shooting way too high, Tesla failed on its original plan, but achieved a world-class result. The next production sites will be much more efficient, and will ramp very rapidly,” he said.
Disclosure: I have no ownership in shares of TSLA and have no plans to initiate any positions within 72 hours.
Investor's Corner
Tesla gets its best analysis from Morgan Stanley as ‘it’s all about to change’
He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.
Tesla has gotten perhaps its best analysis from Morgan Stanley in quite some time, as the Wall Street firm claims that “it’s all about to change.”
That phrase could be used for both the company’s status and the world in general.
Analyst Adam Jonas said in a new note on Thursday to investors that Tesla could be one of the major winners in terms of the global transition from what it is now to what it will be.
He describes the global shift that will occur over the next few years:
“Have you interacted with a robot today? Have you even seen a robot today? No? Well, take a mental picture because it’s all about to change. When we meet someone who has never been in a Waymo or a Tesla Cybercab (which is most people), we frequently see a wince and a response such as ‘I’m not sure I’d feel comfortable getting in a car without a driver.’ We imagine going back in time to 1903 and asking people if they’d feel comfortable in an airplane.’”
The same technological revolutions that have occurred over the past 150 years will continue to occur again and again. We are on the verge of another, Jonas believes, as companies like Tesla are working on artificial intelligence tech, which includes changing the way we look at things like transportation and labor.
Jonas includes an interesting tidbit in his note about how humanoid robots could change wages, and how it could work into the advantage of Tesla, especially as it is developing its own Optimus robot:
“We estimate 1 humanoid robot at $5/hour can do the work of 2 humans at $25/hour, generating an NPV of approximately $200k/humanoid. 1 robot shaped car can potentially drive down cost/mile of a ride share vehicle to <$0.20 mile (1/10th human-driven ride-share).”
Jonas sees Tesla as a key player in how AI will impact things like manufacturing and various automotive industries, and he believes there is long-term potential for AI, robomobility, and even autonomous eVTOL platforms.
Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter
He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.
Elon Musk
Tesla stock gets crazy prediction from CEO Elon Musk
Musk says this is what it would take to be a millionaire from a Tesla investment right now.
Tesla stock (NASDAQ: TSLA) got a crazy prediction from CEO Elon Musk recently, as the future of the company seems to be moving more toward AI, autonomy, and robotics, and away from automotive, which is what it has traditionally been recognized as.
Over the past few years, as Tesla has prioritized its Full Self-Driving suite, its rollout of a dedicated Robotaxi program, and the development of the Optimus bot, the company has gained a new reputation from analysts.
It was always looked at as a stock with tremendous potential by many Wall Street firms, some more than others.
The most bullish analysts, like Cathie Wood of ARK Invest, believe the company will eventually reach a multi-trillion-dollar valuation and a share price of over $2,000. Her $2,600 price target does not include any contributions of Optimus. Instead, it leans on Full Self-Driving and Robotaxi.
Based on where the company is now, there are a lot of potential catalysts. The Robotaxi expansion, as well as affordable vehicles, its prowess in AI and Robotics, and its powerful energy division are all arguments for investment.
One X user said that a $150,000 investment in Tesla right now would likely make you a millionaire. Musk said he thinks that sentiment is “probably correct.”
I think this is probably correct
— Elon Musk (@elonmusk) August 5, 2025
He’s echoed this belief in recent earnings calls, including the one for Q2, which happened in July:
“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”
Tesla is trading at $316.50 at the time of writing, and has a market cap of just under $1 trillion.
Elon Musk
Tesla stock gets another analysis from Jim Cramer, and investors will like it
“Tesla is morphing right now. It’s in transition from being a car company to being a technology company.”
Tesla stock (NASDAQ: TSLA) got its latest analysis from Jim Cramer, and investors will like what he has to say.
Cramer has flip-flopped his thoughts on Tesla shares many times over the years. One time, he said CEO Elon Musk was a genius; the next, he said Ford stock was a better play. He’s always changing his tune.
However, Cramer’s most recent analysis is of a bullish tone, as he talks about the company’s evolution from an automaker to a tech powerhouse. He made the comments on CNBC’s Mad Money:
“Tesla is morphing right now. It’s in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it’s selling for right now. Don’t care where you bought it, care where it’s going to.”
Jim Cramer last night on $TSLA: “Tesla is morphing right now. It’s in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it’s selling for right now. Don’t care where you bought it, care where… pic.twitter.com/WzlPdQD7gq
— Sawyer Merritt (@SawyerMerritt) August 5, 2025
Tesla has always been looked at by the mainstream media as an automaker. While that is its main business currently, Tesla has always had other divisions: Energy, Solar, Charging, AI, and Robotics. Some came after others, but the important point is that Tesla has not been an automaker exclusively for a decade.
It launched Powerwall and Powerpack in April 2015, marking the start of Tesla Energy.
But Cramer has a point here: Tesla is truly becoming much more than a car company, and it is turning into an AI and overall tech company more than ever before. Eventually, it will be recognized as such, more so than it will be as an automotive company.
Cramer’s comments also follow a recent prediction by Musk, who stated on X that he believes a $150,000 investment in Tesla shares right now would eventually turn someone into a millionaire:
I think this is probably correct
— Elon Musk (@elonmusk) August 5, 2025
Musk has said he believes Tesla could be headed to a serious increase in valuation. Eventually, it could become the most valuable company in the world. He said this during the Q2 Earnings Call:
“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”
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