Tesla (TSLA) stock saw a 1.2% rise in early trading on Monday, continuing its upward momentum for a fifth consecutive day.
Shares were trading at $288.30, while both the S&P 500 and Dow Jones Industrial Average saw smaller gains of 0.2% and 0.3%, respectively.
However, as the time of writing, the stock has given up some of those gains to trade 0.4% higher. The stock is still down around 25% since the start of the year.
The jump today follows an 18.1% surge in Tesla shares last week, despite the company reporting first-quarter earnings that fell short of expectations.
Tesla’s operating profit of $399 million missed Wall Street estimates by around $500 million.
However, the stock’s gain was driven primarily by CEO Elon Musk’s announcement that he would reduce his time in Washington, DC, to focus more on Tesla, a move that investors welcomed.
Analyst remains bullish
Cantor Fitzgerald has reaffirmed its “Overweight” rating on Tesla (TSLA), maintaining a 12-month price target of $355.
Despite anticipated near-term challenges, such as macroeconomic conditions, tariffs, CEO Elon Musk’s polarizing politics, and the potential removal of the EV Tax Credit, the firm remains optimistic about Tesla’s long-term prospects.
Tesla’s stock has declined by approximately 29.4% year-to-date, but the company’s solid financial position, with more cash than debt, has helped to sustain Cantor Fitzgerald’s confidence.
The firm also views positively Musk’s announcement that he will reduce his involvement with DOGE starting in May to focus more on Tesla.
Looking ahead, Cantor Fitzgerald is particularly bullish on Tesla’s upcoming catalysts, including the rollout of Full Self-Driving (FSD) technology in China, which began in Q1 2025, and the expected launch of FSD in Europe in the first half of 2025, subject to regulatory approval.
Several analysts disagree
Tesla’s Q1 earnings miss and increasing tariff risks have led to a series of downward revisions from Wall Street analysts, with many signaling that the company’s recovery may take longer than previously expected.
CFRA Research downgraded Tesla to a “Hold” rating, slashing its price target to $260.
The firm warned that earnings per share may not return to 2023 levels until at least 2027, citing rising cost pressures and weakening EV demand. This outlook suggests a prolonged recovery rather than a short-term setback.
Goldman Sachs followed suit, cutting its price target to $235. While the bank maintained a neutral stance and still sees long-term potential in Tesla’s full self-driving technology, it acknowledged that the future of this catalyst is now more uncertain in light of the disappointing Q1 results.
Wells Fargo took a more bearish approach, reducing its target to $120 and maintaining an “underweight” rating.
Analyst Colin Langan highlighted worsening fundamentals, particularly in Tesla’s energy business, and questioned the viability of the company’s promised affordable model, suggesting it could simply be a cost-reduced Model Y.
The post Tesla stock looks to extend winning streak as analyst remains bullish appeared first on Invezz