Tesla Wins Over Another Skeptic: JPMorgan Raises TSLA Stock Price Target By More Than 200%

• JPMorgan's bullish turn on Tesla is rooted in the firm's belief that the company is evolving far beyond its electric vehicle business.
• The firm argued that Tesla sits at the forefront of "physical AI" and is beginning to address entirely new, largely untapped markets.
• Looking ahead, JPMorgan forecasts an earnings inflection point for Tesla in 2028, followed by roughly 50% annual earnings growth through 2030 and beyond.

Tesla Inc. (TSLA) shares received a major vote of confidence from JPMorgan on Friday, as the firm more than tripled its TSLA price target.

According to TheFly, JPMorgan hiked its price target for Tesla to $475 from $145, while upgrading the stock to ‘Neutral’ from ‘Underweight’.

Tesla’s shares were up nearly 0.3% in Friday’s pre-market trade. TSLA was among the top trending tickers on Stocktwits at the time of writing.

Why Did JPMorgan More Than Triple TSLA Stock Price Target?

JPMorgan's bullish turn on Tesla is rooted in the firm's belief that the company is evolving far beyond its electric vehicle business. The firm argued that Tesla sits at the forefront of "physical AI" and is beginning to address entirely new, largely untapped markets.

According to the note, Tesla's industrial-scale manufacturing footprint, vertically integrated hardware and software ecosystem, and rapid pace of technological development give it an “unmatched” advantage over competitors. JPMorgan believes these strengths are not fully reflected in the stock's current valuation.

TSLA Earnings Inflection Point In 2028

Looking ahead, the firm forecasts an earnings inflection point for Tesla in 2028, followed by roughly 50% annual earnings growth through 2030 and beyond.

JPMorgan acknowledged that Tesla's valuation appears stretched based on its near-term earnings outlook.

However, the firm believes investors should remain focused on the company's longer-term opportunities, particularly in emerging businesses that are unlikely to meaningfully impact financial results until 2029.

TSLA Notches Gains In EU

Tesla's European vehicle sales jumped 67% year-over-year in April, marking the company's third straight month of growth in the region.

Data released last week by the European Automobile Manufacturers' Association (ACEA) showed Tesla sold 9,169 vehicles in the European Union in April, up from 5,483 units a year earlier.

Tesla's sales across the EU, EFTA markets and the U.K. climbed 47% year-over-year to 10,654 vehicles in April from 7,272 units in the prior-year period. Its share of the battery-electric vehicle market also increased to 0.9%, compared with 0.6% a year ago.

How Did Retail Investors React To TSLA Stock?

Retail sentiment on Stocktwits around Tesla trended in the ‘bearish’ territory at the time of writing.

One user stated that the JPMorgan upgrade relies on Tesla generating revenue from robotics and autonomous driving by 2030.

TSLA stock is down 7% year-to-date, but up 26% over the past 12 months. The S&P 500 ETF (SPY) is up 27% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 40%.

The Vanguard Total Stock Market Index Fund ETF (VTI) and the Vanguard S&P 500 ETF (VOO) are up 27% during this period.

Also See: This Small-Cap Biotech Just Soared Over 160% — What Is The Novo Nordisk Connection?

For updates and corrections, email newsroom[at]stocktwits[dot]com.