Tesla (NASDAQ: TSLA) has finished positive in 11 of the last 12 trading days on Wall Street, giving Citi a reason to upgrade the stock’s price target based on “catalysts” in both electric vehicle and artificial intelligence sentiments.
Despite a sizeable dropoff on the market yesterday due to the reported delay of the Robotaxi unveiling event, Citi is boosting its price target from $182 to $274, and maintaining a Neutral rating on shares.
Citi analysts are more convinced of a solid near-term narrative on Tesla stock. Tesla shares have enjoyed a tremendous run-up over the past month, gaining 40 percent in just 30 trading days.
This is mainly due to the earnings beat, a strong showing from the company’s energy division, and future prospects in the EV and AI fronts.
The boost in stock price, from Citi’s perspective, won’t come from “core EV fundamentals.” Instead, Tesla will need to roll out significant developments on the automotive and AI side:
“The Q2 delivery beat was also encouraging, which prompts increased estimates and supports Citi’s underlying call for improving EV sentiment this summer. However, the firm believes core EV fundamentals alone are unlikely to support significantly further upside from here in Tesla shares absent new product and AI catalysts.”
Tesla should have plenty of things in the pipeline, especially considering the prospect of its next-gen platform which both the Robotaxi and another new vehicle will be built upon. There could be plenty of other vehicles in the pipeline in the future, including a van.
Tesla is also in talks with a major automaker regarding Full Self-Driving licensing, which could further solidify the company’s place as a major player in the race to autonomy.
Xpeng CEO bullish on autonomy in Tesla FSD (Supervised) review
There still needs to be execution on Tesla’s end, which will come in time. However, the big question remains regarding the Robotaxi unveiling event, which is now in question for August following reports yesterday.
Tesla is up over 3 percent at 11:30 a.m. today on the East Coast.
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
