Baird reiterates Neutral rating on Tesla stock, maintains $320 price target

Published 08/09/2025, 08:30
Baird reiterates Neutral rating on Tesla stock, maintains $320 price target

Investing.com - Baird has reiterated its Neutral rating on Tesla (NASDAQ:TSLA) stock, maintaining a price target of $320.00. According to InvestingPro data, Tesla currently trades at a P/E ratio of 191x, significantly above industry averages, with analyst targets ranging from $115 to $500.

The research firm’s decision comes as Tesla’s board unveiled a new compensation package for CEO Elon Musk this week, featuring ambitious targets across all business segments that could result in a $1 trillion bonus if achieved.

Tesla also released the next phase of its Master Plan, which outlines the company’s strategy for achieving what it calls "sustainable abundance."

Baird expects both the incentive package and Master Plan to be central topics at Tesla’s upcoming shareholder meeting scheduled for November 6, where Musk is likely to discuss long-term opportunities for the electric vehicle manufacturer.

Despite these developments, Baird maintains a cautious stance on Tesla in the near term, balancing the company’s ambitious future plans against current market conditions.

In other recent news, Tesla announced an update to its indemnification agreements for directors and executive officers, as approved by its Board of Directors. This updated agreement ensures that Tesla will indemnify these individuals and advance expenses to the fullest extent allowed under Texas law. Additionally, Tesla’s new compensation package for CEO Elon Musk, valued potentially at $1 trillion, has been a focal point, with Stifel reiterating its Buy rating and maintaining a $440 price target for the company. The compensation plan is contingent upon achieving significant milestones, which Stifel describes as requiring "sustained executional excellence."

William Blair, on the other hand, reiterated a Market Perform rating, noting that Musk’s incentive plan underscores his long-term commitment to Tesla, with an ambitious goal of reaching an $8.5 trillion market cap. Wedbush also maintained its Outperform rating and a $500 price target, citing Musk’s commitment to remain with Tesla through 2030 as a positive factor. In the UK, Tesla’s new-car sales rose by 7.63% in August compared to the same period last year, reflecting a broader increase in battery electric vehicle sales, which grew by 15% during the month. These developments highlight Tesla’s ongoing strategic moves and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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