Tesla Hits New Heights: Mizuho Highlights Big Potential in EV and FSD

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Tesla stock surged on Tuesday, hitting a new record high and continuing its impressive year-end rally. Shares climbed 3.6% to close above $479, marking a 20% increase over the past five days. This momentum reflects optimism around Tesla's prospects under President-elect Donald Trump's administration. Since Election Day, Tesla's stock has soared by more than 85%.  

The latest boost came from Mizuho Securities analyst Vijay Rakesh, who upgraded Tesla from Neutral to Outperform and raised the price target significantly, from $230 to $515. Rakesh cited unique advantages for Tesla, including potential regulatory changes favoring autonomous driving, the repeal of electric vehicle tax credits, and Tesla’s cost-efficient EV models compared to competitors.  

"We believe Tesla's leadership in EVs, solar and battery storage, and charging infrastructure positions it to outpace less-established peers," Rakesh wrote. He also highlighted that reduced regulations on autonomous vehicles under the incoming administration could accelerate Tesla’s Full Self-Driving (FSD) and Robo-Taxi deployments, creating significant long-term revenue opportunities.  

Mizuho’s new price target suggests an additional 10% upside for Tesla stock. The firm’s “bull case” estimates a potential share price of $681 if Tesla achieves breakthroughs in FSD technology, robotaxi services, and its Optimus robot project.  

Wedbush analyst Dan Ives also contributed to Tesla’s strong week, raising his price target from $400 to $515. Ives emphasized the immense potential of Tesla’s AI and autonomous driving initiatives, estimating these opportunities to be worth at least $1 trillion. He expects these key projects to gain momentum under Trump’s administration.  

Recent reports bolster these expectations. Reuters noted that the Trump administration is considering removing a National Highway Traffic Safety Administration (NHTSA) mandate requiring automakers to report crashes involving self-driving systems, which would benefit Tesla. The company has disclosed over 1,500 such incidents involving its FSD and Autopilot software.  

Additionally, Bloomberg reported that the Trump transition team plans to prioritize creating a federal framework for self-driving vehicles through the Department of Transportation. Eased regulations for vehicles without traditional controls like pedals and steering wheels would significantly benefit Tesla, aligning with CEO Elon Musk’s vision of the company’s future being driven by FSD and autonomous technology.

 

 

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Yahoo!Finance" all rights reserved by the original author.