Stifel raised its price target on Tesla to $483 from $440, citing increased confidence in the company’s Full Self-Driving (FSD) software and its expanding Robotaxi program.
The upgrade comes a day after Tesla began the wide rollout of FSD Version 14.1 — the first release in the 14 series after skipping 14.0 — marking what Chief Executive Officer Elon Musk described as the company’s “second biggest update ever.”
The brokerage maintained a Buy rating on the stock.
Based on Tuesday’s closing price of $433, the new price target represents an upside potential of 11.5%.
“We believe Tesla is making progress with modest advancements in its Robotaxi network and FSD,” Stifel analyst Stephen Gengaro wrote in a research note first obtained by PriceTarget.
“We are bumping our target price to $483 from $440 to reflect more confidence in FSD and Robotaxi,” Gengaro added.
FSD V14.1 introduces several new features, including “Arrival Options” that let drivers choose where the system should park — in a lot, on the street, in a driveway, in a garage, or curbside.
The update also enables vehicles to pull over or yield for emergency vehicles such as police cars and ambulances, addressing one of the criticisms of previous versions.
A new ‘Speed Profile’ allows users to further customize driving style preferences.
Gengaro said Tesla “has high expectations for its camera-based approach,” highlighting the scale of its Unsupervised FSD technology and its Robotaxi ambitions.
He added that while Tesla aims to make Unsupervised FSD available for personal use in the US by the end of 2025 — a goal he called “a stretch” — it appears “more likely in the medium term.”
Tesla launched a pilot Robotaxi service in Austin, Texas, in June with an initial fleet of about 10 Model Y vehicles and has since expanded to additional cities.
According to Gengaro, Tesla expects its Robotaxi fleet to grow “from tiny to gigantic in a short period of time,” with a potential material impact on financial results by the end of 2026.
The analyst also cited Tesla’s statement that it will “probably have ride hailing in probably half of the populations of the US by the end of the year.”
Separately, Goldman Sachs said in a note Wednesday that Tesla’s new lower-priced variants of the Model 3 and Model Y offer “good value in general,” though analyst Mark Delaney noted the price gap with existing trims was narrower than expected.
Tesla shares rose 0.8% to $436 in premarket trading Wednesday.
