Cantor Fitzgerald has shifted its stance on Tesla Inc. to bullish after a recent visit to the company’s headquarters. This change in outlook is based on insights gained from the visit and the potential for significant growth in various sectors of the company.
Key Insights from the Visit
The Cantor Fitzgerald analyst, Andres Sheppard, upgraded Tesla from Neutral to Overweight and maintained a price target of $425. This decision was made following a visit to Tesla’s Austin Gigafactory and the company’s AI data centers. With Tesla shares down about 45% year-to-date, Sheppard sees an attractive entry point ahead of several material catalysts.
Upcoming Catalysts
Several catalysts are expected to drive Tesla’s growth, including:
- The introduction of the Robotaxi segment, predicted to launch in June
- The rollout of Full Self-Driving (FSD) in China, which has already begun, and in Europe, expected in the first half of the year
- The introduction of a lower-priced vehicle, around $30,000 including tax credits, in the first half of 2025
- High-volume production of Optimus in 2026, with initial deliveries in the first half of the year
- Production of the Tesla Semi, expected to start in the second half of 2025 or 2026
Future Revenue Upside
Sheppard believes that future revenue upside from FSD, Robotaxi, Energy Storage & Deployment, and Optimus Bots will be fundamental to Tesla’s thesis over the long term. Although the analyst anticipates some near-term softness, driven by lower demand in Europe and increased competition in China, as well as negative sentiment surrounding CEO Elon Musk’s polarizing political stance, the overall outlook is bullish.
Near-Term Expectations
Cantor Fitzgerald expects a “mild” first quarter from Tesla, with automotive business growth partially offset by tariffs and the likely removal of the EV tax credit. The analyst firm has lowered its full-year 2025 delivery estimates from approximately 2 million to approximately 1.9 million and cut its 2026 estimates from approximately 2.39 million to approximately 2.33 million.
Financial Projections
The analyst firm has also cut its full-year 2025 revenue estimates from $115.7 billion to $107.4 billion and 2026 revenue estimates from $148.3 billion to $141 billion. Tesla is not due to report quarterly results again until late April, with consensus estimates currently calling for earnings of 53 cents per share and revenue of $24.52 billion.
Current Stock Price
Tesla shares were up 2.58% at $231.27 at the time of publication, according to market data. With the predicted catalysts and growth opportunities, the stock is expected to surge to $425, presenting a significant investment opportunity.