Tesla stock (TSLA) got a boost following Donald Trump’s inauguration day, with analysts raising their price predictions as Q4 earnings get closer. Since Trump’s US presidential election win, TSLA has become one of the stock market’s most successful stories. This is largely due to founder Elon Musk’s involvement in Trump’s administration. As a result of its recent performance, some analysts are suggesting that Tesla’s stock could reach as high as $500.
On Tuesday, Piper Sandler analyst Alexander Potter revised his previous price projection for TSLA stock. Indeed, he boosted his Tesla price target by $185 to $500 a share. Explaining his reasoning, Potter states that investors are now “more willing to entertain upside scenarios” based on the potential of the group’s ‘real-world’ artificial intelligence.” While the EV market may see a bit of decline soon, Tesla’s efforts in AI technology developments are swaying investors’ confidence into a new lane.
Tesla Shines as Experts Raise Stock Predictions
Elon Musk’s Tesla added more than $560 billion in value since the close of trading on November 4. Ahead of its Q4 earnings report next week, Potter predicts that Tesla will likely deliver around 1.96 million vehicles in 2025. This would be an 11.4% advance from 2024, with “more than 100,000 incremental units to come from unknown vehicles, and another 70,000 incremental units from Cybertruck,” the Piper Sandler analyst adds. While the increase in vehicle development is good, Elon Musk says that Tesla is leaning towards other avenues outside of EVs moving forward.
Musk says Tesla will produce as many as 2 million autonomous Cybercabs a year by 2026. Additionally, he insists that “20% to 30% vehicle growth next year” is likely, absent “some force majeure events, like some big war breaks out or interest rates go sky high or something like that.” “Once Tesla fulfills its current launch pipeline, management’s focus will shift away from launching new cars and toward popularizing Full-Self-Driving software,” Potter said.
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Furthermore, Piper Sandler believes that 2025 will start out a bit “choppy” for Tesla stock. However, Alexander Potter remains convinced that Tesla is a top “buy-and-hold idea” for 2025. Tesla will report its Q4 2024 earnings after the close of trading on January 29.