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Tesla stock hit a new all-time high for the fifth day in a row on Tuesday, surging as much as 5% to $483.99.
Gains have continued to roll in for Tesla stock since President-elect Donald Trump won a second term as president. Since the November election, Tesla shares have risen 92%.
A surge in Wall Street bullishness has driven the gains in Tesla stock over the past few days.
Analysts from Wedbush and Mizuho increased their price targets for the stock to $515, representing upside of about 9% from current levels and the highest target among Wall Street analysts.
Mizuho analysts bumped Tesla to "Outperform" from their prior rating of Neutral and more than doubled their target from $230 a share.
"We are upgrading TSLA to Outperform as we see idiosyncratic tailwinds over the next ~4Y[ears] positioning it favorably," Mizuho analysts led by Vijay Rakesh said.
Those "idiosyncratic tailwinds" include the expected easing of autonomous driving regulations and proposed Trump policies like ending the tax credit for electric vehicles. Those policy moves put Tesla in a better position than its peers as it has a lower EV cost structure and a more profitable EV road map, with expectations of a low-cost vehicle in the coming years, according to the Mizuho's analysis.
In a sum-of-the-parts valuation model, Rakesh valued Tesla at $1.8 trillion, with the core autos and energy business worth $711 billion, the autonomous driving efforts worth $614 billion with upside to $896 billion, and humanoid robots worth $472 billion with upside to $740 billion.
Notably, Mizuho estimates that Tesla will sell 7.2 million humanoid robots by 2040, with an average selling price of $23,000, generating $166 billion in revenue.
"We see regulatory tailwinds favorable despite near-term challenges from EU tariffs/US tax credit repeals, but less of a headwind for TSLA relative to peers," Rakesh said.
For Wedbush analyst Dan Ives, much of Tesla's bull case hinges on its autonomous future.
Ives raised his price target to $515 from $400 and said that in a bull case scenario, the stock could soar 38% to $650 in 2025.
"We are raising our price target on Tesla to $515 from $400 as we believe the Trump White House the next 4 years will be a "total game changer" for the autonomous and AI story for Tesla and Musk over the coming years," Ives said in a Sunday note.
Ives highlighted that his bullish price target does not include any potential upside from Tesla's development of its humanoid robot, dubbed "Optimus," and instead hinges on the company's growing exposure to AI.
"The next step in this broader Tesla strategic vision begins which is the autonomous and AI era as we believe Tesla remains the most undervalued AI play in the market today," Ives said.
