Tesla’s ambitious push to bring fully autonomous driving to everyday roads just got a big vote of confidence.
In October, research, analytics, and investment firm Melius Research initiated coverage of the company with a $520 price target, deeming Tesla a “must own” stock, Teslarati reported.
“It can rapidly improve and scale autonomy in driving, the first major manifestation of AI in the physical world,” said Rob Wertheimer, director of research at Melius Research, per the publication.
Melius pointed to Tesla’s willingness to take risks and move quickly, noting that its innovations in AI are among the most advanced.
Wertheimer added, “We see Tesla as a must-own. The disruptive force of AI will wreck multitrillion-dollar industries, starting with auto.”
The bet comes as Tesla continues to roll out its latest full self-driving software version in the U.S. and eyes robotaxi services, a move that could reshape how consumers view car ownership.
For drivers, the potential is massive. Autonomous cars could reduce commute costs (through ride-sharing AVs), improve road safety, and offer flexibility in how vehicles are used.
According to the Alliance for Automotive Innovation, automated vehicles with driver-assist technologies, such as Tesla’s blind spot assist system, can help reduce human errors that can lead to crashes.
Environmentally, improved efficiency and smarter navigation can help reduce overall energy use, though the supply chains for batteries and AI hardware remain a major environmental concern.
The bullish call arrives during a challenging year for Tesla. The company’s deliveries have slowed to 1.2 million, a 6% drop from the 1.8 million deliveries made during the first three quarters of 2024, per a CNBC report.
It’s estimated that by the end of 2025, the company will deliver approximately 1.61 million units, 10% less than in 2024, Reuters reported.
In an effort to boost sales this year, Tesla rolled out more affordable versions of Model Y and Model 3 vehicles, according to the Associated Press.
Individuals looking to shift to EVs, or those who already own EVs, can benefit from charging their vehicles at home, which remains far cheaper than relying on public stations.
Qmerit helps homeowners get free, instant Level 2 charger installation estimates. Adding solar can cut costs even more, and EnergySage makes it easy to compare local solar installers and maximize savings.
However, some experts caution against Tesla’s stock.
“This is the biggest meme stock we’ve ever seen,” said Yale School of Management Senior Associate Dean Jeff Sonnenfeld, according to Teslarati. “Even at its peak, Amazon was nowhere near this level.”
“Tesla shares continue to strike us as having become completely divorced from the fundamentals,” Ryan Brinkman of J.P. Morgan remarked, per the publication.
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