Freedom Capital Markets upgrades Tesla stock rating to Hold on new segment potential

Investing.com - Freedom Capital Markets upgraded Tesla (NASDAQ:TSLA) from Sell to Hold on Friday, while raising its price target to $406.00 from $338.00. The stock, currently trading at $435.70, has seen analyst targets ranging from $120 to $600, according to InvestingPro data.

The upgrade follows Tesla’s Q3 results, which the research firm said reinforced its view that the company is approaching the realization of its new segment potential. With a market capitalization of $1.45 trillion and trailing twelve-month revenue of $92.72 billion, Tesla continues to dominate the automotive sector.

Freedom Capital Markets noted that updates to Tesla’s model lineup have stabilized electric vehicle delivery volumes after weaker sales in the first half of 2025.

The firm indicated it now seems likely that Tesla could return to growth in deliveries in upcoming quarters.

The price target increase represents a 20% boost from the previous target of $338.00, reflecting the firm’s more optimistic outlook on Tesla’s business prospects.

In other recent news, Tesla reported third-quarter revenue of $28.1 billion, surpassing both Benchmark’s estimate of $25.9 billion and the FactSet consensus of $26.5 billion. Despite the impressive revenue figures, Tesla’s gross margin of 18.0% fell short of Benchmark’s projection of 18.8% but was above the 17.5% consensus. Cantor Fitzgerald raised its price target on Tesla to $510, citing strong performance in revenue, gross margin, and free cash flow, driven by record vehicle deliveries and growth in the energy sector. Meanwhile, Truist Securities increased its price target for Tesla to $406, maintaining a Hold rating following the mixed third-quarter results. Benchmark also maintained its Buy rating and $475 price target, highlighting the strong earnings report. Additionally, Needham kept its Hold rating on Tesla, acknowledging the company’s leadership in electrification and energy storage but considering the stock fairly valued. In regulatory news, the National Highway Traffic Safety Administration is in contact with Tesla regarding the "Mad Max" driver assistance feature, which has drawn attention for operating at higher speeds than other versions.

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