Shares of Tesla edged higher Friday as optimism surrounding the company’s long-term growth potential.
Analysts at Baird lifted their outlook for the stock, pointing to ambitious expansion plans and a steady pipeline of product catalysts.
Stock performance and recent momentum
Tesla shares were up around 2.64% at $427.86 on Friday after closing 2.1% lower the previous session.
That decline ended a seven-day winning streak for the stock.
Despite the pullback, Tesla has climbed nearly 25% so far this month, including a gain of 5.3% this week.
The stock’s rally has been supported by multiple developments.
Among them, Tesla reached a settlement in a California lawsuit tied to its driver-assistance technology, CEO Elon Musk purchased company shares for the first time since 2020, and the Federal Reserve delivered an interest-rate cut.
These events, coupled with renewed optimism from Wall Street, have boosted sentiment around the electric-vehicle maker.
Baird upgrade highlights growth catalysts
On Friday, analysts at Baird upgraded Tesla to Outperform from Neutral and lifted their price target to $548 from $320, implying upside potential of more than 30%.
The firm’s revised outlook followed Goldman Sachs’ earlier move this week to raise its target price to $395 from $300.
Baird analyst Ben Kallo said investor attention is increasingly turning toward Tesla’s long-term growth prospects.
“The road ahead is chock-full of catalysts,” Kallo wrote in a client note, pointing to a series of milestones Tesla outlined in September that are tied to Musk’s compensation plan.
The proposal includes ambitious goals: boosting Tesla’s valuation nearly eightfold to more than $8 trillion and reaching $400 billion in adjusted EBITDA over the next decade.
To achieve those targets, Baird noted, Tesla would need to scale up production and expand its product lineup.
“Increased production capacity and new product introductions provide a steady cadence of upcoming catalysts,” Kallo said.
Among the initiatives highlighted were Tesla’s robotaxi service and Optimus humanoid robots, both of which the firm believes could play a role in driving recurring revenue streams.
Market outlook and analyst divide
Tesla’s recent momentum underscores how closely investors are watching its growth trajectory and ability to deliver on bold projections.
The company’s planned expansion into new markets and technologies, such as autonomous driving services and robotics, has the potential to diversify revenue and reshape its business model.
However, Wall Street remains divided on Tesla’s outlook.
According to LSEG data, Baird’s upgrade is one of 23 buy or strong buy ratings on the stock.
Nearly half of analysts, however, recommend holding shares, reflecting uncertainty over the feasibility of Tesla’s ambitious goals.
For now, the latest analyst upgrades and Musk’s renewed personal investment in Tesla stock have reinforced market confidence.
Investors will be looking for further evidence that Tesla can execute on its growth strategy and maintain momentum in an increasingly competitive electric-vehicle landscape.
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