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‘There Are Plenty of Risks, And Yet…’ Says Top Investor About Tesla Stock

‘There Are Plenty of Risks, And Yet…’ Says Top Investor About Tesla Stock

Tesla, Inc. (NASDAQ:TSLA) will command plenty of attention this week, as its upcoming Q3 2025 earnings report on Wednesday is among the market’s most eagerly anticipated quarterly prints. Tesla has been on a nice run of late, a welcome reprieve after a rough start to the year.

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Q3 deliveries of 497,099 set a new company record, breaking a series of quarters with declining year-over-year numbers. Meanwhile, CEO Elon Musk seemingly has both hands on the steering wheel, with a potential compensation package of some $1 trillion providing no shortage of motivation.

The company’s share price has gained more than 90% over the past six months, recovering from a dip during the initial part of the year. Q3 estimates of $26.58 billion in revenues and a normalized EPS of $0.55 would represent sequential gains, begging the question of whether TSLA’s recent momentum will continue.

Though acknowledging some of the risks, including EV competition, AI monetization, and the wildcard of Musk’s political dalliances, top investor Victor Dergunov is going all in.

“Tesla, Inc. is upgraded to a Strong Buy, driven by Elon Musk’s conviction, record EV deliveries, and transformative growth in AI, FSD, and energy,” exclaims the 5-star investor, who is among the top 3% of stock pros covered by TipRanks.

It’s nearly impossible to discuss TSLA’s prospects without mentioning Elon Musk, and the CEO’s commitment is one of the reasons for Dergunov’s bullish take. The investor notes Musk’s potential compensation plan as well as a recent $1 billion worth of stock purchases on the open market as signs that the CEO is fully engaged.

The investor is also pleased by Tesla’s recent Q3 deliveries, and points to the company’s Model Y refresh as another reason for continued optimism. All told, Dergunov suggests that Tesla’s Q3 revenues could have reached $29 billion, and the investor predicts that more gains are looming on the horizon.

“A 12-month price target of $650 and a long-term target of $2,500-3,500 are set for TSLA stock, while acknowledging risks in execution, competition, and valuation,” sums up Dergunov, who rates TSLA a Strong Buy. (To watch Victor Dergunov’s track record, click here)

Wall Street has a mixed view regarding Tesla as this momentous week begins. With 15 Buys, 13 Holds, and 10 Sells, TSLA carries a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $365.82 implies losses of ~17%. (See TSLA stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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