JPMorgan upgraded Tesla from underweight to neutral on Friday. The firm raised its price target for the automaker to $475 from $145. Analysts shifted their valuation model to prioritize long-term potential in autonomous driving and robotics over near-term electric vehicle earnings.
JPMorgan describes Tesla as a leader in physical AI with a vertically integrated ecosystem. The bank forecasts a major earnings inflection point for the company after 2028. Earnings per share could potentially triple by 2030.
Growth in services and new business segments will drive these projected gains. Tesla shares showed a mixed reaction in early premarket trading, falling marginally before rising nearly 0.3%.