Summary
- Tesla upgraded rating on shares by Wall Street firm Cantor Fitzgerald
- Despite negative news, bulls on Wall Street still consider Tesla a safe play
- Potential catalysts include Robotaxi rollout, Full Self-Driving in China, affordable models introduction
- Weaknesses include removal of EV tax credit and tariffs
- Tesla trading up over 5 percent on Wednesday at $236.86
Article
Cantor Fitzgerald, a Wall Street firm, recently gave Tesla an upgraded rating on its shares following a visit to the company’s data centers and production lines in Austin. Despite Tesla facing pressure from negative news surrounding sentiment and potentially lower delivery figures due to the launch of a new version of the Model Y, bulls on Wall Street still see Tesla as a safe investment. Analyst Andres Sheppard noted that there is significant potential for Tesla in 2025 based on the visit to the Cortex AI data centers and Gigafactory Texas. He highlighted upcoming catalysts such as the Robotaxi rollout in Austin in June and continued expansion of Full Self-Driving technology in various regions.
Sheppard’s note on the upgrade to Tesla’s rating emphasized the attractive entry point ahead of upcoming material catalysts such as the Robotaxi segment launch in Austin and California later in 2025, as well as the rollout of Full Self-Driving in China and Europe. He also mentioned the introduction of affordable models in the first half of the year and other growth initiatives like Optimus, energy division growth, and the longer-term potential of the Semi. However, potential weaknesses for Tesla include the likely removal of the EV tax credit and growth being offset by tariffs, which could hinder the company’s expansion.
Despite facing challenges, Tesla’s shares rose more than 5 percent on the day following Cantor Fitzgerald’s upgraded rating, reaching $236.86. The focus on upcoming high-profile product launches and expansion into new markets like the Robotaxi segment and Full Self-Driving technology has generated optimism among investors. Tesla’s robust presence in industries such as automotive, energy, and AI/Robotics has also contributed to its appeal as a safe play on Wall Street.
The successful visit to Tesla’s facilities in Austin provided Cantor Fitzgerald analysts with insight into the company’s potential for growth in the coming years. The combination of innovative products like the Robotaxi segment, continued development of Full Self-Driving technology, and the introduction of affordable models positions Tesla as a key player in the automotive and technology sectors. With a focus on addressing potential weaknesses such as the EV tax credit and tariffs, Tesla aims to overcome challenges and further establish its position in the market.
Looking ahead, Tesla’s ambitious plans for the future, including the rollout of the Robotaxi segment in Austin and other regions, expansion of Full Self-Driving technology, and introduction of new affordable models demonstrate the company’s commitment to innovation and growth. The consistent focus on improving existing products and exploring new opportunities in areas like energy and AI/Robotics indicates Tesla’s determination to maintain its position as a leader in the industry. Despite facing pressure and negative news, Tesla’s resilience and potential for expansion continue to attract positive attention from analysts and investors alike.
Read the full article here
