🚨 Stifel Adjusts Price Target on Tesla to $492 From $411, Maintains BUY Rating

On Monday, Stifel analysts increased their price target on $TSLA shares to $492 from the previous $411, while maintaining a Buy rating on the electric vehicle manufacturer. The adjustment reflects a positive outlook for Tesla's growth prospects, particularly with the anticipated removal of the $7,500 vehicle tax credit, which is seen as a relative advantage for the company.

The analysts at Stifel highlighted the upcoming rollout of Tesla's "Model 2" as a key growth catalyst. They believe that Tesla is in a strong position to deliver robust multi-year growth from 2024 through 2027 and beyond. The near-term prospects are also looking up with the revamped Model 3 and the forthcoming Model Y refresh, which are expected to bolster sales significantly.

Tesla's lower-priced vehicle, the Model 2, is poised to begin production and is expected to attract very strong demand. This new addition to Tesla's lineup is projected to make the brand more accessible to a broader market, potentially driving up sales volumes.

Moreover, Tesla's advancements in artificial intelligence, particularly with its Full Self-Driving (FSD) initiative, are seen as a potential source of significant value. Stifel analysts anticipate that sales of FSD, along with possible licensing agreements and its critical role in long-term Cybercab (Robotaxi) initiatives, will contribute to Tesla's growth trajectory.