Tesla price target upgrade from Citi on EV and AI catalysts
Tesla (NASDAQ: TSLA) has closed higher in 11 out of the past 12 trading days on Wall Street, prompting Citi to raise Tesla price target due to promising developments in electric vehicles and artificial intelligence.
Despite the market downturn yesterday due to the delayed Robotaxi unveiling event, Citi increased its price target for the shares from $182 to $274, while maintaining a Neutral rating. Citi analysts are growing more bullish on Tesla’s short-term prospects. Tesla’s stock has seen a substantial surge, rising 40% in the past month alone over 30 trading days.
The significant increase can be largely attributed to earnings surpassing expectations, strong performance in the company’s energy sector, and promising outlooks in electric vehicles and artificial intelligence (AI).
According to Citi, the increase in Tesla’s stock price will not be driven solely by “core EV fundamentals.” Instead, Tesla must make significant advancements in the automotive and AI sectors:
“The strong Q2 delivery performance was promising, resulting in increased projections and bolstering Citi’s optimism about improving sentiment towards EVs this summer. However, the firm asserts that without new product launches and advancements in AI, core EV fundamentals alone are unlikely to propel Tesla shares significantly higher from their current levels.”
Tesla has a robust pipeline ahead, particularly with its upcoming next-generation platform slated for both the Robotaxi and another new vehicle. There are also potential plans for additional vehicles in the pipeline, possibly including a van.
Tesla is currently in discussions with a major automaker regarding licensing for Full Self-Driving capabilities, a strategic move that could substantially bolster its position in the race toward autonomy.
Tesla’s progress hinges on executing its plans, which will evolve gradually. However, the current focus centers on uncertainties surrounding the scheduled Robotaxi unveiling event in August, as reported yesterday.
As of 11:30 a.m. today on the East Coast, Tesla’s stock has surged more than 3 percent.
