TD Cowen Raises Tesla’s Price Target to $519

TD Cowen analyst Itay Michaeli raised the price target on Tesla to $519 (from $509) while maintaining a ‘Buy’ rating on the stock.

“Resilient Q4 Sets A Foundation For Improving Sentiment Ahead Of AV Catalysts

The Q4 outcome was fairly consistent with our balanced setup view, as a solid margin beat and positive RoboTaxi updates were in part offset by the capex guide and absence of a specific timeline for unsupervised customer FSD.

Ultimately, the resilient results should set a foundation for sentiment improvement as Tesla enters a period containing ample AV/Robotics catalyst potential.

Buy, PT to $519.

We Continue To Like The Risk/Reward Here

We believe Tesla’s resilient Q4 results will ultimately set a foundation for sentiment improvement with the company entering a period that could see meaningful AV/Robotics catalysts (Cybercab, RoboTaxi expansion, FSD progress, Optimus V3) amid a backdrop of generally skeptical sentiment.

At an estimated ~ $0.30 cost/mile, we believe Cybercab will allow Tesla to expand RoboTaxi operations in less penetrated rideshare markets, with our model suggesting that attaining ~5% penetration in less dense MSAs alone could generate ~$100bln of revenue.

We also view AV success as a key catalyst for boosting vehicle demand this year.”

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