Cantor Fitzgerald thinks investors who have thrown in the towel when it comes to Tesla are missing the bigger picture. The Wall Street firm upgraded shares of the electric vehicle maker to overweight from neutral and kept its $425 price target. That forecast implies upside of 88.6%. Shares of Tesla have plummeted 44% this year, in part due to concerns over CEO Elon Musk’s growing presence in the U.S. government and rising global competition. However, analyst Andres Sheppard pointed to Tesla’s pullback as a buying opportunity. “We believe the recent selloff represents an attractive entry point for investors with > 12-month investment horizon (and who are comfortable with volatility),” he wrote. TSLA 1Y mountain TSLA 1Y chart Upcoming bullish catalysts for Tesla cited by Sheppard include the introduction of its Robotaxi segment, the introduction of a lower-priced vehicle in the first half of this year,and the rollout of full self-driving in China and Europe. “Overall we are bullish after our factory visit, and after the recent market selloff and share underperformance,” the analyst said. “We see future revenue upside from FSD, Robotaxi, Energy Storage & Deployment, and Optimus Bots, to be fundamental to TSLA’s thesis over the long term.” Specifically, Sheppard was bullish on Tesla’s future potential in the autonomous ride-sharing industry in the U.S., and believes the company could quickly capture market share once it releases its cybercab. “During the Tour, we test-drove Tesla’s latest FSD (v.13.2.8), and are encouraged ahead of commercialization of its robotaxi segment. Additionally, recall that President Trump’s Administration previously discussed plans to potentially establish a federal framework for self-driving vehicles in the U.S. If implemented, then we see Tesla as a major beneficiary,” he added. Tesla shares were up more than 2% in the premarket following the upgrade.
