Investing.com -- Cantor Fitzgerald raised Tesla (NASDAQ:TSLA) to Overweight from Neutral in a note Wednesday, citing an attractive entry point following a steep selloff and several upcoming catalysts that could drive future growth.
“With Tesla’s shares now down ~45% YTD, we upgrade Tesla to Overweight (from Neutral) ahead of upcoming material catalysts,” Cantor analysts wrote.
Key drivers for Tesla’s growth are said to include the launch of its Robotaxi segment in June 2025, the expansion of Full Self-Driving (FSD) in China and Europe, the introduction of a lower-priced vehicle, and the rollout of Optimus Bots and the Semi Truck.
While Tesla expects its automotive business to ‘return to growth’ in 2025, Cantor notes that this could be partially offset by tariffs and the potential removal of the EV tax credit, both of which “will have a material impact to the industry.”
Cantor remains bullish on Tesla’s self-driving ambitions, pointing to its extensive data advantage.
“Waymo’s vehicles have reported >25M cumulative autonomous miles driven on public roadways as of 12/2024. TSLA, on the other hand, has reported >3B cumulative autonomous miles driven (on supervised Full Self-Driving FSD), as of January 2025.”
Cantor analysts also highlighted potential regulatory tailwinds, stating that if the Trump administration establishes a federal framework for self-driving vehicles, Tesla could be a major beneficiary.
Despite Tesla reporting FY24 revenue of $97.7B, slightly below expectations, Cantor sees long-term revenue upside from FSD, Robotaxi, Energy Storage & Deployment, and Optimus Bots as central to Tesla’s investment thesis.
Cantor maintains a $425 price target on the stock, citing these developments as key factors that could drive the stock higher over time.