Cantor Fitzgerald upgraded Tesla (TSLA, Financials) to Overweight from Neutral, citing a buying opportunity following the recent sell-off, the firm announced after a site visit to Tesla's Gigafactory and AI data centers in Austin.
The change was mostly based on Tesla's stance on autonomous driving. Waymo (GOOG, Financials) rules the autonomous ride-sharing industry with about 150,000 weekly trips, while Tesla's Full Self-Driving software has traveled more than 3 billion miles worldwide—a statistic Cantor finds to be a competitive advantage.
Notwithstanding almost constant market volatility, the company sees Tesla's FSD, Robotaxi, energy storage, and Optimus Bots as fundamental cornerstones of long-term development. With profits per share forecast to climb from $2.60 to $4.37 over the same time, revenue is projected to expand from $97.7 billion in fiscal 2024 to $140.8 billion by 2026.
Setting a $425 price objective for Tesla, Cantor Fitzgerald implied an 80% increase from present levels. The 52-week high of Tesla is $488.54.
Following his appointment as Commerce Secretary, Cantor Fitzgerald—formerly run by Howard Lutnick—shifts under new direction.
