Tesla is poised to gain ground as the electric vehicle maker aims to expand its artificial intelligence-driven initiatives, including its burgeoning robotaxi fleet and humanoid robot business, according to Deutsche Bank. The investment firm, which has a buy rating on shares, raised its price target for Tesla to $435 from $345. That suggests upside of roughly 2.7%. “We think Elon Musk’s clear focus on Tesla’s most important efforts (robotaxi and Optimus) and the recent compensation package have removed a large overhang on the stock and going forward, will allow Tesla to benefit from being a leader in embodied AI,” analyst Edison Yu said Friday in a note. Tesla’s robotaxi service could begin fueling its revenue growth in just two years, Yu said, noting that the company’s fleet has already grown to more than 100 vehicles split between Austin and the Bay Area. Tesla robotaxis are also expected to roll out in Nevada, Arizona and Florida over the next year, with testing beginning in major markets such as Illinois and New York around that time. “Looking forward, we expect the fleet to grow to +1,000 vehicles by the end of 1Q26 and then begin having some more material contribution to financials in 2027,” Yu wrote. He also expects Tesla’s Optimus humanoid robot business to grow considerably over the next several years, predicting that 1.25 million robots will be sold at $25,000 per unit in 2035, according to the note. Tesla’s electric vehicle business is also on track to notch deliveries that exceed expectations for the third quarter, boosted by the launch of its Model Y L in China and consumers’ rush to buy electric cars in the U.S. ahead of the Trump administration’s planned phase out of incentives for EV buyers, according to Deutsche Bank. Deutsche Bank’s call on Tesla puts it in alignment with many Wall Street shops. However, analysts are somewhat split on the stock’s prospects, with 24 analysts assigning Tesla a buy or strong buy rating and 19 experts advising their clients to hold shares of the EV maker. Tesla shares rose 1% in premarket trading on Friday. The stock has soared roughly 55% in the past six months. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
