Tesla (TSLA, Financial) stock is on fire—again. After smashing through all-time highs to $480 at the time of writing, the EV giant is now up nearly 170% in the past six months. The surge has added nearly $700 billion in market cap and has analysts racing to raise their price targets. Mizuho analyst Vijay Rakesh upgraded Tesla to "Buy" and bumped his target to $515—a cool 11% higher than current levels—on expectations that Tesla's self-driving robotaxi rollout in 2025 and growing energy storage business will drive the next wave of growth. Wedbush's Dan Ives backs that view, also pegging Tesla at $515, with an ultra-bullish scenario of $650 if growth fires on all cylinders.
Why the hype? For starters, Tesla isn't just about cars anymore. Analysts point to next-gen vehicles, including a more affordable EV lineup, refreshed models, and the scaling of its Shanghai Megapack factory, which is set to juice margins and revenue. While Tesla's forward P/E ratio of 140x and premium valuation might make value investors sweat, projections for 2025 EPS growth of 31.8% and 2025 expected free cash flow doubling to $7.2 billion are hard to ignore.
Of course, Tesla isn't risk-free. This valuation assumes flawless execution on product launches, broader FSD adoption, and scaling its energy business—all while competing in an increasingly crowded EV space. But Tesla's history of defying skeptics is well-documented, and investors are betting big on its ability to transform transportation and energy markets. If this rally mirrors Tesla's previous runs, we could be looking at the start of another massive move. Whether the stock is overvalued or just warming up, one thing is clear: Wall Street isn't ready to hit the brakes.
