Early trading on Tuesday saw Tesla (TSLA, Financial) stock tick up following Mizuho Securities's upgrading of the electric vehicle manufacturer to an Outperform rating, while boosting its price target to $515, citing enhanced valuation upside linked to autonomous driving capabilities.
According to Mizuho analyst Vijay Rakesh, a relaxation of policies surrounding autonomous driving could potentially increase valuations for Full Self-Driving and Robotaxis. Rakesh also talked about the Trump administration's policies favoring Tesla's lower-cost electric vehicle manufacturing over rivals.
Moreover, with the planned release of a low-cost Model Q and Cybercab, planned for introduction in 2026-2027, the analyst said Tesla's strategy positioned the business to surge past the global competition. After closing at a record $463.19 on Monday, Tesla shares climbed almost 3% pre-market to $476.22 Tuesday.
With around 86% year-to-date increase, the stock's market capitalization has peaked at $1.5 trillion. Also, Tesla stock has posted 103% in the past three months alone, and over 44% in the past month, offering tremendous upside from current levels.
