JPMorgan upgrades Tesla to neutral, raises price target 228% to $475

JPMorgan upgraded Tesla Inc. to neutral from underweight, raising its price target 228% to $475 after a change in the bank's auto analyst.

Tesla's vertically integrated software and hardware model gives it a "unique advantage" that is "unmatched at an industrial-level scale," new analyst Rajat Gupta said.

Gupta replaced Ryan Brinkman, who had maintained a sell rating on Tesla since 2015 and predicted the stock would fall to $145. The new $475 target implies about 13.5% upside from Thursday's close of $418.45. Tesla shares trade at 195 times estimated adjusted earnings for fiscal 2027, a valuation Gupta described as "clearly lofty."

The upgrade removes one of Wall Street's most prominent bearish voices on Tesla. Gupta said better buying opportunities may emerge later as near-term valuation risks from index diversification could provide a better entry point for investors.

Gupta's target price starts to value Tesla on earnings potential in 2030 and beyond, when he expects revenue and margin performance to inflect higher following the current period of heavy spending. Near-term share direction will likely be tied to progress on robotaxi and Optimus, along with improving visibility on forward earnings, he said.

The removal of a long-standing sell rating from a top-tier Wall Street bank marks a meaningful shift in institutional sentiment toward Tesla. Investors will watch for incremental data on robotaxi and Optimus progress as the next catalysts for the stock.

This article is for informational purposes only and does not constitute investment advice.