Intel stock spikes after report of possible US government stake
On Friday, RBC Capital upheld its optimistic stance on Tesla stock (NASDAQ:TSLA), confirming an Outperform rating and a price target of $440. The firm's analysis indicates that Tesla's shares have seen a significant rise, increasing over 70% following the recent election. According to InvestingPro data, Tesla's stock has delivered an impressive 98.42% return over the past year, with analyst targets ranging from $125 to $550. With a market capitalization of $1.32 trillion and a P/E ratio of 103, Tesla trades at premium valuations. RBC Capital attributes potential federal deregulation of self-driving vehicles as a positive influence that the new administration could have on the electric vehicle maker.
The firm acknowledges Tesla's Full Self-Driving (FSD) software as a leading product in its category, though it also notes that its readiness for Level 4 camera-only robotaxi use in the near term remains uncertain. Despite this, the deployment of Waymo's autonomous vehicle service in Miami is seen as an indicator that Tesla could potentially secure a significant portion of the US market for a closed-loop robotaxi service.
RBC Capital also identifies potential near-term catalysts for Tesla, including an increase in FSD adoption, which could lead to improved profit margins. The firm suggests that price reductions could further stimulate the uptake of Tesla's FSD technology. With Tesla's next earnings report due on January 29, 2025, investors seeking deeper insights can access comprehensive valuation metrics and 21 additional ProTips through InvestingPro's detailed research reports.
In their commentary, RBC Capital expressed, "While we do think the new administration could help with federal deregulation of self-driving vehicles, ultimately, the success of Tesla's autonomy ambitions, especially as it relates to robotaxis, will come from how well FSD develops." They further elaborated on the competitive landscape, mentioning Waymo's initiatives as a benchmark for Tesla's opportunities in the robotaxi market.
RBC Capital concludes by maintaining its price target of $440 for Tesla stock, along with its Outperform rating, reflecting their continued confidence in the company's prospects and the anticipated positive impact of FSD adoption on the company's financial performance. Based on InvestingPro's analysis, Tesla currently appears overvalued relative to its Fair Value, despite maintaining a GOOD overall Financial Health Score and generating annual revenue of $97.15 billion.
In other recent news, Tesla, the electric vehicle manufacturer, has been under the gaze of numerous analysts, investors, and industry observers. The company's recent financial performance showed an annual revenue reaching $97.15 billion. Analyst firm Oppenheimer maintained a Perform rating on Tesla, citing cautious optimism about the company's technological progress and market strategy, especially in the areas of vehicle sales and autonomous driving technology.
On the other hand, the Tesla Model 3 recently clinched the Edmunds Top Rated Electric Car 2025 award, underscoring the vehicle's consistent improvements and affordability. This development has been viewed positively by the investment firm Wedbush Securities, which subsequently increased its price target on Tesla shares.
In related news, JPMorgan CEO Jamie Dimon publicly praised Tesla's CEO, Elon Musk, referring to him as the 'Einstein of our generation.' This acknowledgment hints at potential future collaborations and a shift in their relationship.
Despite these developments, Musk expressed concerns about the funding for the Stargate AI infrastructure project, involving OpenAI, Oracle (NYSE:ORCL), and SoftBank (TYO:9984). According to Musk, SoftBank has secured well under the projected investment plan of up to $500 billion. These are the recent developments surrounding Tesla.
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