Baird Raises Tesla Price Target

Investing.com — Baird raised its price target for Tesla Inc (NASDAQ:TSLA) to $480 from $280, citing strong growth prospects for the automaker, supported by cost reductions, new models, and favorable regulatory dynamics.

> “The stock has gained significant momentum and has several upcoming potential catalysts. We like the stock long term and would be buyers on pullbacks,” an analyst stated.

Tesla's stock has surged nearly 91% since the U.S. presidential election, far outpacing the S&P 500's 4.6% gain.

A potential regulatory fast track for the Cybercab, the rollout of affordable vehicles, and Musk's ties to President-elect Trump have led Baird to maintain a bullish outlook on Tesla for 2025.

Baird anticipates that Tesla’s cost-cutting measures and increased factory utilization will drive growth, while regulatory credit sales could become a sustainable revenue stream as competitors face production challenges.

However, the removal of U.S. EV tax credits and geopolitical risks linked to Tesla's Shanghai operations pose risks, alongside concerns about CEO Elon Musk’s ability to balance multiple roles.

Baird’s $200 increase in price target reflects a premium valuation of 57 times 2028 EBITDA estimates, discounted to 2025, based on Tesla's growth potential and industry tailwinds.