Tesla stock is nearing record highs as growing AI optimism and new analyst upgrades boost investor confidence, though valuations remain a sticking point for skeptics.
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Tesla Stock Is Back within Striking Distance from Highs as AI Hype and New Analyst Forecasts Lift TSLA
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Tesla shares (TSLA) are back within striking distance of their highs. The stock touched the mid-$460s on Wednesday, leaving it only a few percentage points from last December’s record close and intraday peak. The broader market was firm, and AI enthusiasm kept a tailwind under mega-cap tech.
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New Analyst Price Targets Reignite the Bull Case
Bank of America (BAC) lifted its price target to $471 from $341, arguing that robo-taxis and humanoid robots deserve a bigger slice of Tesla’s valuation and using a lower discount rate in its model. That shift adds to a run of target bumps since the company reported third-quarter results.
Even with the higher target, the rating stays at Hold because the multiple is rich versus 2026 earnings. That tension is the core of the debate: bulls point to new AI-driven businesses, while skeptics say the stock already prices in years of success.
AI Momentum Lifts Sentiment
Nvidia’s (NVDA) Washington event put more fuel on the AI fire after upbeat takeaways about Blackwell and Rubin orders. Whenever spending plans for AI compute ramp, investors tend to rotate into names tied to autonomy and robotics, and Tesla sits near the top of that list.
For Tesla holders, the AI story is simple. If software and services scale, earnings power broadens beyond cars. Each data point that hints at bigger AI budgets nudges that narrative along.
What Can Push TSLA Shares to New Highs
Execution still matters. Investors want to see progress on full self-driving, updates on the robotaxi platform, and steady margin control in the auto business as price cuts fade. Any clear timeline on commercial deployments could be the spark that takes the stock through prior highs.
Macro also plays a role. Easier financial conditions and resilient consumer demand tend to support higher multiples for growth stocks. A friendlier rate backdrop would make new highs easier to reach.
Is Tesla a Buy, Hold, or Sell?
Based on the latest 35 analyst ratings over the past three months, Tesla carries a Hold consensus. This is based on 14 Buys, 11 Holds, and 10 Sells. The average 12-month TSLA price target is $382.54, which implies 17.2% downside from the last price in the snapshot.
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