Tesla stock rating reiterated at Buy by TD Cowen, citing product goals

Published 12/09/2025, 08:42
Tesla stock rating reiterated at Buy by TD Cowen, citing product goals

Investing.com - TD Cowen has reiterated its Buy rating on Tesla (NASDAQ:TSLA) with a price target of $374.00, following a sell-side call with the Special Committee of the Tesla Board. The stock, currently trading at $368.81 with a market capitalization of $1.23 trillion, appears overvalued according to InvestingPro analysis.

The investment firm indicated it gained a clearer understanding of the CEO compensation proposal outlined in the company’s proxy statement, which includes specific product milestones.

TD Cowen noted that Tesla’s product milestones appear well-aligned with the firm’s thesis on the company, increasing its confidence in Tesla’s long-term trajectory.

The four Product Goals in the proxy provide insight into Tesla’s long-term strategic priorities, with TD Cowen estimating these goals would align with the first two EBITDA milestones of $50 billion and $80 billion.

The firm’s working assumption suggests these product goals could be achieved around 2030 within Tesla’s 10-year plan, with remaining EBITDA milestones (up to $400 billion) reflecting the company’s scalability ambitions.

In other recent news, Tesla has unveiled a new compensation package for CEO Elon Musk that could potentially be worth up to $1 trillion if specific performance milestones are met. This ambitious plan ties Musk’s compensation to achieving an $8.5 trillion market capitalization, a significant increase from Tesla’s current valuation of about $1 trillion. Analysts have weighed in on this development, with Cantor Fitzgerald reiterating its Overweight rating and maintaining a price target of $355. Baird has kept its Neutral rating with a $320 price target, while Stifel continues to rate Tesla as a Buy with a $440 price target, citing the aggressive nature of the milestones. William Blair, on the other hand, reiterated a Market Perform rating, noting the plan’s indication of Musk’s long-term commitment to Tesla. Additionally, Tesla’s Board of Directors has approved updated indemnification agreements for its directors and executive officers, ensuring full coverage under Texas law and continued insurance protection. These developments reflect Tesla’s strategic focus on long-term growth and leadership stability.

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