JPMorgan raises Tesla’s target price 227% and sets it at 475dollars

JPMorgan analyst Rajat Gupta raised Tesla’s target price from 145dollars to 475dollars and upgraded its rating from underweight to neutral. Gupta said the reason for the change was that he valued the company as a multi-business platform rather than simply an automaker. Gupta said he recalculated the valuation by combining five markets.

The five markets cited by Gupta are automobiles, energy storage, robotaxis, humanoid robots, and infrastructure licensing. He explained that he reset the valuation by combining the revenue potential of each business with Tesla’s accumulated technology. The report noted that the estimates included many assumptions because the business models differ by segment.

Gupta identified Tesla’s vertical integration as a key competitive strength. He cited the ability to scale through the integration of hardware and software, artificial intelligence, and data. The report explained that this linkage could affect long-term profitability.

The report estimated that revenue 2030would more than double by the year. This estimate was based on a scenario combining five fields. The same report stated that the growth assumptions required multiple premises.

It also presented an estimate that earnings per share would increase to nearly three times the current level. The report added that this estimate included high-growth assumptions. This month, other institutions, including Goldman Sachs, Sanford Bernstein, and Evercore, also adjusted their ratings or targets for Tesla.

The report pointed out that execution risks remained significant. In particular, it stated that the timing of commercialization and cost structures of the robotaxi and humanoid businesses were uncertain. The report recommended verifying the estimation assumptions and execution plans when making investment decisions.