Investor's Corner
Tesla’s strong Q3 financials catalyze price target increases from analysts
Tesla (NASDAQ: TSLA) posted an incredibly strong third quarter last evening during its Earnings Call, making remarkable strides on its financials to extend its profitable quarters streak to nine. Analysts at numerous Wall Street firms are upgrading their price targets on Tesla stock following the company’s strong numbers and positive outlook moving forward as it intends to ramp its Texas and Berlin Gigafactories in the coming months.
Wedbush – Dan Ives
Starting with some of Tesla’s most notable bulls, Wedbush’s Daniel Ives boosted his price target to $1,100 from $1,000 while maintaining an Outperform rating. “Last night, Tesla delivered solid top-line results which were in-line with expectations and speaks to a new Tesla margin story going forward,” Ives wrote to investors. “Auto GM was 30%+ and roughly 250 bps ahead of Street expectations which highlights the massive leverage in the Tesla story now starting to take hold with Giga China front and center as Tesla is on an EBITDA run-rate of roughly $13 billion, a staggering number given the company is still in the early stages of building out its global EV moat.”
Tesla’s demand increases, which have resulted in delivery estimates extending well into 2022 are going to be handled by Giga Berlin and Giga Texas. “We believe EV demand is outstripping supply for Tesla by roughly 30k units and the chip shortage has clearly amplified this dynamic with wait times for Model Y and some Model 3’s extending into the spring for current orders,” Ives said. “However, big supply help is on the way for Musk & Co. as the long the awaited Gigafactory hubs in Austin and Berlin are set to have are set to have the ribbon cut over the coming months and should expand Tesla’s capacity to roughly 2 million units annually over the next 18 months.
Ives has a $1,500 price target for Tesla’s bull case, up from the $1,300 target he previously held. TipRanks has Ives ranked 18 out of 7,705 analysts, with an average return of 37.5% and a success rate of 79%.
Canaccord Genuity – Jed Dorsheimer
Dorsheimer raised his price target from $940 to $1,040 while maintaining a Buy rating. “Post Tesla’s 3Q21, we are maintaining our BUY rating and increasing out PT to $1,040, which is based on 45x our ’24 Adj. EBITDA estimate of $25.9B (previously $940 based on 55x of $19B). We are bullish on the auto gross margin expansion, and remain excited for battery constraints to abate and be reallocated to energy products later in 2022,” Dorsheimer wrote. “After reporting record delivery numbers a few weeks ago, a beat may have been priced in and shares could see a ‘buy the rumor, sell the news’ type pull back. We would be buyers at these levels and if any pullback occurs.”
TipRanks has Dorsheimer ranked 210 out of 7,705 analysts, with an average return of 32.9% and a success rate of 56%.
Deutsche Bank – Emmanuel Rosner
Rosner raised his price target on Tesla from $900 to $1,000, maintaining his Buy rating. The impressive measure of automotive gross margins was indicative of a strong operational performance, despite industry challenges like semiconductor and parts shortages.
“Tesla reported particularly strong 3Q21 operating performance, delivering its highest auto gross margins since Model 3 was introduced, despite minimal S+X volume and higher supply chain costs, and impressive GAAP operating margin of 14.6% (18.4% ex-SBC), surpassing even its long-term company targets,” Rosner wrote. Tesla also stated that, despite its low volume, the Model S has returned to profitability.
“While revenue came in somewhat below expectations, this was driven mainly by lower regulatory credit and services/other contributions, while auto revenue was more in-line. We leave our 2021E deliveries unchanged at 845k, but take up our auto GM (ex credit) to nearly 27% from <26%, and EPS to $6.45 (from $6.20 previously).”
Rosner holds a ranking of 1,339 out of 7,705 analysts with a 57% success rate and an average return of 14.3%, according to TipRanks.
Disclosure: Joey Klender is a TSLA Shareholder.
Investor's Corner
Tesla enters new stability phase, firm upgrades and adjusts outlook
Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.
Tesla is entering a new phase of stability in terms of vehicle deliveries, one firm wrote in a new note during the final week of October, backing its position with an upgrade and price target increase on the stock.
Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.
While most firms are interested in highlighting Tesla’s future growth, which will be catalyzed mostly by the advent of self-driving vehicles, autonomy, and the company’s all-in mentality on AI and robotics, Pozdnyakov is solely focusing on vehicle deliveries.
The analyst wrote in a note to investors that he believes Tesla’s updated vehicle lineup, which includes its new affordable “Standard” trims of the Model 3 and Model Y, is going to stabilize the company’s delivery volumes and return the company to annual growth.
Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings
Tesla launched the new affordable Model 3 and Model Y “Standard” trims on October 7, which introduced two stripped-down, less premium versions of the all-electric sedan and crossover.
They are both priced at under $40,000, with the Model 3 at $37,990 and the Model Y at $39,990, and while these prices may not necessarily be what consumers were expecting, they are well under what Kelley Blue Book said was the average new car transaction price for September, which swelled above $50,000.
Despite the rollout of these two new models, it is interesting to hear that a Wall Street firm would think that Tesla is going to return to more stable delivery figures and potentially enter a new growth phase.
Many Wall Street firms have been more focused on AI, Robotics, and Tesla’s self-driving project, which are the more prevalent things that will drive investor growth over the next few years.
Wedbush’s Dan Ives, for example, tends to focus on the company’s prowess in AI and self-driving. However, he did touch on vehicle deliveries in the coming years in a recent note.
Ives said in a note on October 2:
“While EV demand is expected to fall with the EV tax credit expiration, this was a great bounce-back quarter for TSLA to lay the groundwork for deliveries moving forward, but there is still work to do to gain further ground from a delivery perspective.”
Tesla has some things to figure out before it can truly consider guaranteed stability from a delivery standpoint. Initially, the next two quarters will be a crucial way to determine demand without the $7,500 EV tax credit. It will also begin to figure out if its new affordable models are attractive enough at their current price point to win over consumers.
Investor's Corner
Bank of America raises Tesla PT to $471, citing Robotaxi and Optimus potential
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Bank of America has raised its Tesla (NASDAQ:TSLA) price target by 38% to $471, up from $341 per share.
The firm also kept a Neutral rating on the electric vehicle maker, citing strong progress in autonomy and robotics.
Robotaxi and Optimus momentum
Bank of America analyst Federico Merendi noted that the firm’s price target increase reflects Tesla’s growing potential in its Robotaxi and Optimus programs, among other factors. BofA’s updated valuation is based on a sum-of-the-parts (SOTP) model extending through 2040, which shows the Robotaxi platform accounting for 45% of total value. The model also shows Tesla’s humanoid robot Optimus contributing 19%, and Full Self-Driving (FSD) and the Energy segment adding 17% and 6% respectively.
“Overall, we find that TSLA’s core automotive business represents around 12% of the total value while robotaxi is 45%, FSD is 17%, Energy Generation & Storage is around 6% and Optimus is 19%,” the Bank of America analyst noted.
Still a Neutral rating
Despite recognizing long-term potential in AI-driven verticals, Merendi’s team maintained a Neutral rating, suggesting that much of the optimism is already priced into Tesla’s valuation.
“Our PO revision is driven by a lower cost of equity capital, better Robotaxi progress, and a higher valuation for Optimus to account for the potential entrance into international markets,” the analyst stated.
Interestingly enough, Tesla’s core automotive business, which contributes the lion’s share of the company’s operations today, represents just 12% of total value in BofA’s model.
Elon Musk
Tesla analyst: ‘near zero chance’ Elon Musk’s $1T comp package is rejected
“There is a near-zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting.”
A Tesla analyst says there is “zero chance” that CEO Elon Musk’s new compensation package is rejected, a testament to the loyalty and belief many shareholders and investors have in the frontman.
Tesla investors will vote on November 6 at the annual Shareholder Meeting to approve a new compensation package for Musk, revealed by the company’s Board of Directors earlier this month.
The package, if approved, would give Musk the opportunity to earn $1 trillion in stock, an ownership concentration of over 27 percent (a major request of Musk’s), and a solidified future at the company.
The Tesla Community on X, the social media platform Musk bought in 2023, is overwhelmingly in favor of the pay package, though a handful of skeptics remain.
Nevertheless, the big pulls of this vote are held by proxy firms and other large-scale investors. Two of them, Institutional Shareholder Services (ISS) and Glass Lewis, said they would be voting against Musk’s proposed compensation plan.
Tesla CEO Elon Musk’s $1 trillion pay package hits first adversity from proxy firm
Today, the State Board of Administration of Florida (SBA) said it would vote in favor of Musk’s newly-proposed pay day, making it the first large-scale shareholder to announce it would support the CEO’s pay.
One analyst said that Musk’s payday is inevitable. Gary Black of the Future Fund said today there is a “near-zero chance” that shareholders will allow Musk’s pay package to be rejected:
“There is a near-zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting.”
He added an alternative perspective from Wedbush’s Dan Ives, who said that he had a better chance of starting for the New York Yankees than the comp package not being approved.
There is a near zero chance that $TSLA shareholders will vote down Elon’s new proposed comp plan at the Nov 6 shareholders’ meeting. As Wedbush analyst Dan Ives (@divestech) colorfully put it in a Yahoo Finance interview on October 23rd: “I have a better chance of starting for…
— Gary Black (@garyblack00) October 27, 2025
Black’s the Future Fund sold its Tesla holdings earlier this year. He explained that the firm believed the company’s valuation was too disconnected from fundamentals, citing the P/E ratio of 188x and declining earnings estimates.
The firm maintained its $310 price target, and shares were trading at $356.90 that day.
Shares closed at $452.42 today.
The latest predictions from betting platform Kalshi have shown Musk’s comp package has a 94 percent chance of being approved:
— Kalshi (@Kalshi) October 20, 2025
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