RBC Capital, an investment firm from the Royal Bank of Canada, has lifted Tesla‘s price target by over 50% citing the potential of the company’s humanoid robot, Optimus.
The firm raised its price target by more than 50% to $500, from $325 previously.
The new target implies an upside potential of 14.8% on the stock, based on Thursday’s close of $435.54.
Tesla‘s shares have jumped over 39% in the past three months, a major rebound from the performance of the first half of 2025.
RBC Capital maintained an Outperform rating on the stock.
As of press time, the stock is trading 2.8% lower at $423, in line with the market’s general decline after US President Donald Trump threatened to increase tariffs on China earlier today.
Analyst Tom Narayan wrote in a new client note, obtained by PriceTarget, that RBC hosted an investor’s meeting in the GigaBerlin facility, “where a key discussion point was on Tesla‘s Optimus humanoid robot.”
RBC estimates that Tesla could capture 5% of the projected $9 trillion humanoid robot market by 2050, the analyst noted, hence the price target increase.
“We estimate Tesla‘s market penetration of the humanoid opportunity at 15% in the US, 8% in the EU, and 4% in China,” Narayan said.
The analyst added that, “applying these assumptions, Tesla could generate $404 billion in humanoid-related revenue by 2050.”
Currently, Narayan estimates that “Tesla‘s humanoid robot segment accounts for 36% of its total valuation,” while the recently launched Robotaxi contributes another 37%.
The two segments are followed by the Full Self-Driving (FSD) software, at 11%, with vehicles and energy storage at 8%, each.
Several analysts have raised their price targets on Tesla over the past weeks, many of them citing the company’s shift towards autonomous vehicles and AI over vehicle sales.
This followed the Board of Directors’ announcement of a new pay package for Musk, which ties his compensation not only to achieving a $7.5 trillion market capitalization but also to the successful development and deployment of these models.
Canaccord Genuity’s analyst George Gianarikas said late last month that Tesla will have a “growth cycle where it must go through a period of creative destruction to achieve those goals.”
The analyst noted then that “humanoids aside, the more success Tesla has in robotaxi, the fewer vehicles they will sell.”
The firm raised its price target on the company by nearly 50% to $490.
Wedbush, which currently has the most bullish call on the EV maker’s stock, reiterated its $600 price target on the stock earlier this week, saying that the company is giving them “greater confidence in the autonomous path forward.”
“The AI valuation will start to get unlocked in the Tesla story,” analys Dan Ives commented in a new research note, adding that Wedbush believes the march to an AI driven valuation for Tesla over the next 6-9 months has now begun.”
According to Ives, “Tesla could reach a $2 trillion market cap early 2026 in a bull case scenario,” and $3 trillion by the end of 2026, “as full-scale volume production begins of the autonomous and robotics roadmap.”
Wedbush’s price target on the company implies a 37.8% jump in the shares value.
