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Tesla (TSLA) stock upgraded to “Outperform” at Wolfe Research

Credit: @JasemAsh via Tesla Owners Wisconsin/Twitter

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Tesla stock (NASDAQ:TSLA) may not have seen a meteoric rise following its latest 3-to-1 stock split, but the electric vehicle maker seems to be earning quite a bit of approval from Wall Street. Just recently, for one, Tesla received an optimistic outlook from Wolfe Research, which upgraded TSLA shares from “Market Perform” to “Outperform.” 

Apart from upgrading TSLA shares to “Outperform,” Wolfe Research analyst Rod Lache also raised his price target for the electric vehicle maker from $317 to $360 per share. Wolfe raised its EV penetration estimates for the United States from 10% to 20%, thanks in part to the Inflation Reduction Act. The analyst raised his 2023 and 2025 EPS estimates from $6.12 and $12.70 to $7.40 and $16 per share. 

“The Inflation Reduction Act stands out as far and away the most consequential development for the U.S. Auto Industry that we’ve seen in a very long time. We believe that it has potential to affect the entire value chain—Significantly changing the trajectory of EV adoption, as well as the competitive landscape and earnings prospects for OEMs and Suppliers. We believe that this development is still far from fully appreciated,” the Wolfe Research analyst noted. 

As noted in an Investing.com report, the penetration rate for electric vehicles this year currently stands at about 5%. Global EV penetration estimates for 2025, on the other hand, have been raised to 22%, up from prior estimates of 17.5%. It should also be noted that Lache expects the United States government to direct incentives worth about $11 billion per year to Tesla. 

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The analyst assumed modest contributions from Tesla’s other products, such as its Energy division and newer ventures like Tesla Insurance, Tesla Service and Charging, and the company’s Full Self-Driving program. “While we remain cautious on several of these areas (especially FSD), the improving outlook within their core Auto business supports meaningful earning upside over the next few years,” Lache wrote.  

Commenting on Wolfe Research’s updated rating on TSLA, The Future Fund Managing Partner Gary Black noted that Rod Lache actually topped Wall Street’s Institutional Investor rankings for several years. Considering the analyst’s reputation and his comments on Tesla, it does appear that the electric vehicle maker will only gain even more momentum in the near future. 

Disclaimer: I am long TSLA.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla plans production boost at Giga Berlin following rebound in Europe

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Credit: Andre Thierig | X

Tesla plans to boost production at its Gigafactory Berlin plant in Germany following a sharp rebound in sales and demand in Europe after a softer 2025.

The plans put Tesla in a better position to compete with strengthening companies in Europe and potentially other markets; demand indicators show Tesla is much better off than in 2025.

Last year was a tough year for Tesla in terms of overall demand in Europe. The company produced over 200,000 vehicles at the German plant last year, a soft figure compared to the 375,000 vehicles Tesla lists as its current capacity at the factory.

Tesla’s overall European sales dropped significantly last year due to a variety of factors. However, sales are rebounding, and demand is strong once again, and only getting stronger. Tesla is now planning to bump production of Model Y vehicles at Giga Berlin upward by about 20 percent. It will also bring 1,000 new jobs to the plant.

Tesla confirmed the details of its planned production expansion in Germany this morning. It is a strategy to keep up with strengthening demand.

In Q1, Tesla saw a record 61,000 vehicles produced at Giga Berlin. European registrations rebounded sharply, with Model Y seeing 117 percent increases in March 2026 compared to last year. Germany alone saw stark increases, with a quadrupling in registrations to 9,252 units.

This trend continued in other key European markets, including France, Denmark and Sweden. Tesla registrations were up over 46 percent in some of these markets, and Model Y continued its trend as a top BEV in the market.

Demand has been recovering strongly in 2026, giving Tesla a reason to expand production efforts at the factory. These increases signal management’s confidence in sustained or growing European pull for Berlin-built vehicles.

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Tesla and driver sued by family of woman killed in Texas crash: what we know

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Credit: CNBC

Tesla is being sued by the family of the woman who was killed in a Texas crash involving a Model 3. The driver, who is also being sued, claimed the vehicle was operating on Autopilot mode, but Tesla executives have come out challenging that claim, stating that the driver of the vehicle overrode the system.

The lawsuit was filed by 76-year-old Martha Avila’s daughter and her husband, who allege a “design defect” involving a Tesla and a failure to warn. The suit alleges negligence against Tesla and the driver, Michael Butler.

Butler “stated he was operating with an automated driving assistance system engaged at the time of the crash,” the Harris County Sheriff’s Office said in a statement. He showed no signs of intoxication and was cooperative, the Sheriff’s Office said, according to NBC News.

Just after reports of the crash and numerous headlines that immediately blamed Tesla’s Autopilot suite, both Tesla CEO Elon Musk and Head of AI Ashok Elluswamy challenged that. Musk said the crash made “no sense” given that Tesla Autopilot and Full Self-Driving do not travel at the speeds the door cameras captured the car traveling at, which Tesla says was 73 MPH.

Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration

Elluswamy also revealed that Tesla data showed Butler overrode the system by pressing the accelerator to 100%, and that the pedal was compressed fully even after the car had crashed. Tesla has not released this data to the public, likely because it is communicating with agencies like the NHTSA on an investigation.

The suit uses a Washington Post analysis of government data that “identified at least 17 fatal incidents linked to Tesla Autopilot.”

This is far from the first time an accident has been blamed on Autopilot. A fatal crash in Texas was blamed on Autopilot several years ago, but when Tesla released data to the NTSB, which was investigating the crash, Autopilot was not available where the crash occurred, and Autosteer was never enabled, meaning the car was manually controlled at the time of the accident.

More information on the accident will be released as Tesla works with agencies to find the cause of the crash. From personal experience, it is hard to imagine Tesla Autopilot or FSD operating in this manner. It drives sometimes too cautiously in residential areas in parking lots, at least in my experience. Speeding happens, but at this rate in this type of area, it is hard to believe.

We look forward to more details being released with time.

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Cybertruck

Tesla Cybertruck is officially the safest pickup, IIHS says

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Credit: Tesla

The Insurance Institute for Highway Safety (IIHS) has awarded the 2025-2026 Tesla Cybertruck crew cab pickup its highest honor: Top Safety Pick+. This marks the Cybertruck as the only full-size pickup to achieve this distinction in recent evaluations.

The award applies specifically to vehicles built after April 2025, following structural upgrades including front underbody reinforcements and footwell modifications.

These changes enabled strong performance in updated crash tests. The Cybertruck earned “Good” ratings in the small overlap front (driver and passenger sides), updated moderate overlap front, and updated side tests—core requirements for the Top Safety Pick+ designation.

It also secured acceptable or good headlights across trims and a “Good” rating for its standard front crash prevention system in pedestrian scenarios, along with acceptable or good performance in vehicle-to-vehicle testing.

The Cybertruck avoided every single pedestrian collision, including:

  • Daytime child crossing
  • Nightitime adult crossing
  • Night parallel adult

In the large pickup category, competitors such as the Toyota Tundra received only a standard Top Safety Pick, while the Ford F-150 and Ram 1500 did not qualify for either award. This positions the Cybertruck as a standout in occupant protection and crash avoidance among its peers.

Credit: IIHS

Ironically, the same vehicle celebrated for superior U.S. safety performance remains banned from public roads in the United Kingdom and much of Europe. Regulators there cite the Cybertruck’s sharp external edges and highly rigid stainless-steel construction as failing pedestrian-protection standards. European and UK rules require rounded surfaces on protruding parts to minimize injury risk in collisions with vulnerable road users.

Critics also point to the truck’s substantial weight and unyielding body structure, which some argue could transfer more force to other vehicles or pedestrians rather than absorbing it.

Tesla’s engineering philosophy underpins the Cybertruck’s strong IIHS results. The vehicle features a distinctive stainless-steel exoskeleton made from ultra-hard 30X cold-rolled stainless steel. This provides exceptional structural rigidity and a robust safety cage that resists deformation in side impacts and rollovers.

Engineers designed integrated load paths to channel crash forces away from the occupant compartment while allowing controlled energy absorption in key zones. Post-April 2025 refinements to the front underbody further optimized performance in overlap crashes.

Complementing the passive structure is Tesla’s advanced active safety suite, including the standard Collision Avoidance Assist system with automatic emergency braking. This contributed directly to the vehicle’s strong front crash prevention scores. The skateboard platform and low center of gravity also enhance stability and handling, reducing the likelihood of certain crashes.

The IIHS recognition highlights how Tesla’s combination of high-strength materials, structural innovation, and software-driven safety systems can deliver top-tier protection in rigorous testing. While global regulatory differences on design and pedestrian interaction continue to limit the Cybertruck’s availability outside North America, its U.S. safety credentials set a new benchmark for full-size pickups.

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