Paul Tudor Jones sees potential market rally after late October
Investing.com - Baird has upgraded Tesla (NASDAQ:TSLA) from Neutral to Outperform and significantly raised its price target to $548.00 from $320.00. According to InvestingPro data, Tesla currently trades at a P/E ratio of 230, significantly above industry averages, though the company maintains a "Good" financial health score.
The upgrade comes despite Tesla missing estimates for three consecutive quarters, with Baird noting that investor focus has "increasingly shifted to the future" for the electric vehicle maker. With Tesla’s next earnings report due on October 15, InvestingPro subscribers can access 20+ additional key insights and detailed financial metrics to better prepare for this crucial catalyst.
Baird expects Tesla’s sales volumes to "likely decline again in full-year 2025" and anticipates "near-term fundamentals will be choppy," yet still believes the stock will outperform the market.
The firm cited Tesla’s position as "the leader in physical AI" as a key factor in its more bullish outlook, alongside the implications of the company’s recently proposed executive pay package.
Tesla stock has gained 10% year-to-date compared to the S&P 500’s 13% rise, and has surged 24% over the past month versus the broader market’s 3% increase.
In other recent news, Tesla has been in the spotlight with several significant developments. Tesla Inc. reached a confidential settlement with the family of a teenager involved in a 2019 crash with a Model 3 using Autopilot, allowing the company to avoid a jury trial. Meanwhile, Goldman Sachs has raised its price target for Tesla to $395, citing higher market multiples and increased forward earnings estimates, while maintaining a Neutral rating. Additionally, Tesla CEO Elon Musk purchased nearly $1 billion worth of company shares, which analysts from William Blair interpreted as a strong signal of confidence in Tesla’s future, especially its robotaxi initiative.
Morgan Stanley has also drawn parallels between the TikTok situation and Tesla’s role in the embodied AI sector, suggesting potential synergies between U.S. technology and Chinese manufacturing capabilities. These developments reflect the broader market’s interest in Tesla’s long-term growth potential and strategic moves.
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