Tesla’s long-term direction and positioning lead to a huge increase in the new price target

Tesla’s focus on sustainable energy and its disruption in various sectors, as well as its current position as a market leader in these sectors, has given the company a huge new price increase at a Wall Street firm.

Vijay Rakesh of Mizuho Securities has increased his Tesla price target by more than double, now at $515 (from $230). Rakesh also upgraded the shares to Outperform from Neutral.

Tesla has been an industry leader and major disruptor in automotive, energy, AI, autonomy and robotics, disrupting these sectors in various ways.

The Company’s focus on these sectors and its position as a market leader have placed it in a prime position to dominate various industries in the future, particularly as other companies and competitors catch up or, in some cases, abandon their efforts altogether.

Rakesh wrote in a note to investors (via Yahoo! Finance):

“We expect TSLA’s leadership in electric vehicles, solar/battery storage and charging infrastructure will allow the company to weather the storm better than less established competitors as the Trump administration eliminates subsidies for key end markets. We also see less stringent regulation for autonomous vehicles (“AVs”) as an important tailwind for TSLA’s ability to scale FSD/robo-taxi deployments, with our base case implying significant long-term revenue from AV operations.”

Mizuho is also considering a potential bull market for Tesla shares at $681, but this depends on the launch of Robotaxi, the solution of “full self-driving” and further advances in Optimus and AI in the future.

It’s the second price target increase Tesla has received this week, as Dan Ives also raised his outlook on the stock for the second time since the presidential election in early November.

Ives, a Wedbush analyst, had a price target of $400 but raised it to $515 on Sunday.

Tesla shares lost almost 9 percent today, but are still up over 77 percent year-over-year. All but two percent of the gains came after the election.

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Tesla’s long-term direction and positioning lead to a huge increase in the new price target