U.S. stocks edge higher; solid earnings season continues
Investing.com -- Benchmark analysts initiated coverage of Tesla (NASDAQ:TSLA) with a Buy rating and $475 per share price target in a note Wednesday, implying a 40% potential return.
The firm highlighted Tesla’s growth opportunities in autonomous vehicles, robotics, and energy solutions, alongside continued expansion in the electric vehicle (EV) market.
Tesla’s Robotaxi service is seen as a key driver of future growth. “We believe the Robotaxi provides a huge opportunity to develop a self-sustaining ecosystem,” Benchmark stated, envisioning a model where Tesla owns and operates a growing fleet of self-driving cars.
The company is set to launch unsupervised full self-driving (FSD) as a paid service in Austin, Texas, this June, with potential for broader expansion if successful.
Another major opportunity lies with Optimus, Tesla’s humanoid robot project, according to the firm.
Benchmark notes that “management believes the long-term potential for Optimus exceeds $10T.”
The firm expects limited Version 1 production in 2025, initially for Tesla’s internal use, followed by 10,000 units by year-end. Tesla plans to introduce Version 2 for external customers in 2026, scaling production at a rapid 5-10x annual rate.
Despite regulatory uncertainties and rising EV competition, Benchmark sees Tesla’s diversified innovations (new vehicle models, FSD expansion, and Optimus) as key mitigants.
The firm also highlights Tesla’s strong balance sheet, with $36.5 billion in cash and investments, supporting its aggressive growth plans.