Truist Securities and Deutsche Bank became the latest firms to increase their price targets on Tesla amid continued progress in its autonomous projects.
The North Carolina–based firm raised its price target to $444 from $406, while Germany’s largest bank lifted its target from $470 to $500.
On Wednesday, Tesla shares hit a new all-time high, reaching $495.28 before retreating later in the session to $467.
The stock has gained only 14.8% over the past 12 months.
After peaking at $488.54 in December 2024, Tesla shares plunged more than 50% in the following four months.
The stock hit a yearly low of $214.25 on April 7, weighed down by US tariff concerns, brand pressure linked to Elon Musk’s political activities, and production disruptions following the introduction of the refreshed Model Y.
In the past eight to nine months, Tesla shares saw a strong recovery, surging more than 130% through Wednesday’s close.
As of press time, Tesla shares were trading about 0.2% lower at $482.40.
Truist’s View
Truist maintained a bearish view on the company’s stock. Despite the price target increase to $444, it still implies a downside of 8.1% based on Thursday’s close at $483.37.
The firm reiterated its Hold rating on the stock.
In a research note published on Friday — and obtained by PriceTarget — analyst William Stein said that the adjustment to their valuation reflects a cautious position on future autonomy developments.
“Autonomous driving news flow will drive volatility in Tesla,” Stein wrote, noting that uncertainty around the timing of Robotaxi expansion and FSD improvements could move the stock in either direction.
The analyst highlighted the importance of both projects as the firm still sees “the majority of Tesla‘s value as linked to its success in bringing AI products and services to market.”
In November, Stein had written that “all of these projects are quite unproven,” with “close to zero revenue,” which alarmed investors.
He called Tesla’s set-up “tricky” despite the approval of Elon Musk’s pay package.
“Musk’s equity award approval removes overhang, but physical AI products are still a long way off,” the analyst said then.
Robotaxi
The Robotaxi service, which Stein calls “the most near-term of these projects,” is expanding both in city coverage and in autonomy ambitions.
Last weekend, Tesla was spotted testing fully empty Model Ys in Austin, where it aims to remove safety operators by year-end.
The first Cybercab units — for which production is scheduled to begin in April — were seen on public roads for the first time on Thursday, following their initial sighting in California a few weeks earlier.
Besides that, the company aims to begin offering the ride-hailing service across new states next year — including Nevada, Arizona, Florida, among others.
“We believe new city announcements will be forthcoming in 2026, but timing of these will be unpredictable,” Stein wrote on Friday.
FSD and Competitors
The Robotaxi is powered by Tesla‘s autonomous driving software, the Full-Self Driving (FSD).
Despite the launch of FSD (Supervised) V14 in October and the several weekly updates that followed, Truist’s analyst remains unconvinced.
Last month, Stein wrote in a research note that the firm’s “evaluation of the nearest-term project, FSD, shows it is impressive, but not yet working as expected.”
On Friday, the analyst reiterated that “imperfections in FSD outcomes and announcements from competitors will contribute to the [stock’s] volatility.”
Last week, rival EV maker Rivian announced major progress on its platform during its ‘Autonomy & AI Day’ event.
The company released a software update on Thursday that dramatically increased its assisted driving coverage — from 135,000 miles to 3.5 million miles — as previously mentioned during the event.
Although the system still lags behind Tesla’s Full Self-Driving (FSD) in autonomous driving capability, Rivian says it aims to achieve Level 3, and potentially Level 4, autonomy within the next two to three years.
