Tesla’s (TSLA) Valuation Could Soar If AI Goals Succeed—$325 PT Maintained

Tesla, Inc. (NASDAQ:TSLA) is one of the Must-Watch AI Stocks on Wall Street. On July 29, RBC Capital raised the firm’s price target on the stock to $325 from $319 and kept an “Outperform” rating on the shares. According to the analysts, Tesla’s valuation has the potential to exceed current levels provided it achieves its goals.

“Should Tesla be successful on all of its goals, its valuation could far exceed even current levels. The Austin robotaxi launch has been better than many feared and the company is looking to expand in more cities,” Narayan said in a Monday note to clients, adding that “regulatory hurdles remain, however … we expect the end of IRA credits and high levels of used EV inventory to pressure the auto business for the next several quarters.”

The Austin robotaxi launch was better than feared, there are regulatory hurdles that are still present. Moreover, IRA credits and high levels of used EV inventory is bound to put pressure on the auto business for the next several quarters.

The analyst is optimistic about Tesla’s robotaxi expansion, even though he doesn’t believe that the company’s goal is realistic. He’s also betting on the company’s humanoid robots efforts.

“Management maintained its goal to reach 1M units per year in less than 5 years. The prototype of its Optimus 3 will be ready by the end of this year and SOP still start next year. Our model only assumes this business will be used for manufacturing jobs. The reality is should these be used for home/retail purposes, the potential upside could be far greater than any other Tesla business.”

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

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Disclosure: None.