FX168 Financial News (North America) reported that since hitting a historic high last December, Tesla's stock price has entered a correction phase, but some analysts on Wall Street remain optimistic about the outlook for 2025.
Tesla's stock price has fallen about 18% from the historic closing high of $479.86 on December 17, and as of Wednesday (January 8), the current price is around $396.14. Last week, the selling pressure intensified due to Tesla's failure to meet its annual delivery targets for the first time, further dragging down Tesla's stock price amid overall weakness in the stock market.
Despite this, some analysts believe that Tesla still holds long-term growth potential.
AI: Tesla's potential growth point.
Dan Ives, an Analyst at Wedbush Securities, stated that AI could be an important bullish reason for Tesla's future development. He predicts that over the next three years, companies will invest $2 trillion in the field of AI.
"In recent years, we have continuously discussed the AI revolution. In our view, this is the most significant technological change in over 40 years," said Ives. "Now, the entire Software field is entering this 'AI feast', and the application scenarios of AI are growing explosively."
Analyst perspective: Why Tesla is still worth looking forward to?
Wedbush Securities: Buy on Low Stock Price.
Wedbush believes that Tesla's recent stock price pullback provides investors with an opportunity to increase their shareholding. Although Tesla delivered approximately 0.4956 million vehicles last year, slightly below the market expectation of 0.5048 million vehicles, the sales performance remains 'considerable'.
In addition, Tesla plans to launch new models in 2025, including the long-discussed low-cost model by Elon Musk, which could serve as a catalyst for the stock price increase.
We believe that Tesla remains one of the most undervalued AI companies in the market, the analyst stated, expressing 'high confidence' that Tesla can achieve a delivery growth rate of 20%-30%.
Wedbush reiterated its 'Outperform' rating on Tesla, with a target price of $515, indicating a 31% upside from the current stock price.
Stifel: Tesla is not just a car company.
Stifel analyst Stephen Gengaro stated that at the current price level, Tesla's stocks are quite attractive. He believes that Tesla is not just an electric vehicle company.
If the only reason to buy Tesla stocks is because it sells electric vehicles, then it is obviously overvalued. However, when considering the full self-driving (FSD) technology and its future applications in the autonomous taxi (Cybercab) business, this will become a significant long-term value driver for the stock price, Gengaro said in an interview with Yahoo Finance.
In addition, Musk's increasingly close relationship with elected President Donald Trump could help him exert influence in accelerating the regulation of autonomous driving technology.
He is clearly playing an important role in promoting discussions around FSD regulation, which has opened the door to various growth opportunities for the company's future.
Stifel has raised Tesla's Target Price to $492, representing a 25% upside from the current level.
Bank of America (BofA): The value of full autonomous driving could reach nearly half a trillion dollars.
Although Bank of America downgraded Tesla's stock rating to Neutral on Tuesday, it still raised the Target Price to $490, corresponding to a 25% upside potential.
Bank of America expects that Tesla's FSD technology could be valued at $480 billion in the future. At the same time, its Robotaxi business in the USA market could be valued at $420 billion, with a Global valuation exceeding $800 billion.
"We experienced the FSD feature during our site visit to Tesla's Austin Gigafactory in December 2024 and were impressed by its performance," the Analyst stated. They predict that by the end of 2030, 23 million cars will be equipped with full autonomous driving software.
Additionally, Bank of America mentioned that Tesla could launch the Robot (Optimus) in 2025 and accelerate mass production, which are all potential Bullish factors.
Morgan Stanley: The energy storage Business is performing remarkably well.
Morgan Stanley pointed out that although Tesla's delivery data was slightly below expectations, the company's performance in its energy Business and the upcoming Low Stock Price models provides impetus for future growth.
Analysts stated that Tesla's energy deployment exceeded expectations by 15% in the fourth quarter, with annual growth reaching 113%. Additionally, Tesla's "new low-priced model" (codenamed Juniper) is planned to launch in mid-2025, which will be a significant driver for the company's future growth.
Morgan Stanley reiterated its Shareholding rating on Tesla, with a Target Price of $400.
Summary: Short-term challenges coexist with long-term opportunities.
Although Tesla faces challenges of delivery data not meeting expectations and market corrections at the beginning of 2025, analysts generally believe that its growth points such as AI, fully autonomous driving, and energy Business, as well as the potential launch of new models, will continue to support its stock price.
However, the market remains cautious about long-term execution risks, especially regarding Tesla's ability to smoothly advance its FSD and Siasun Robot&Automation Business. Analysts expect these factors to further influence Tesla's stock price trends and investment outlook in the coming months.
