Despite Tesla ‘s volatility, the stock remains one of the best ways to play trends across the electric vehicle market, according to TD Cowen. The firm upgraded the stock to buy from hold. Its price target of $388 per share implies around 47.3% upside potential from Thursday’s close. And while shares trade at around 90 times forward earnings, analyst Itay Michaeli is still confident in their potential. “While we are valuation-/sentiment-minded when recommending stocks, we agree with the underlying notion that Tesla cannot be compared to other automaker stocks, not because it isn’t an ‘auto company’, but because it’s arguably best positioned to capture sizable opportunities that exist across auto/mobility and adjacent markets,” Michaeli said in a note on Thursday. In particular, Tesla currently looks like a winner in an emerging autonomous vehicle market, Michaeli added. “We view the Consumer AV vertical as generally overlooked, with Tesla currently in the lead among automakers,” Michaeli said. “Most of Tesla’s US fleet is concentrated in less dense counties where AVs could prove easier to deploy, and where both new business models and existing rideshare revenue (gross bookings) are available.” The comments come as shares are down nearly 35% in 2025, with the stock declining 28% in February alone. In addition to reporting a yearly decline in revenue during its fourth-quarter earnings release and supply chain risks from tariffs, rising negative sentiment around CEO Elon Musk have played a role in the stock’s struggles. TSLA YTD mountain TSLA year to date Analysts are split on Tesla. Of the 54 who cover the stock, 26 rate it a buy or strong buy, according LSEG. Another 17 have a hold rating on shares, while 12 assigned it an underperform or sell rating. TD Cowen also named General Motors at top pick, noting that it’s not “your typical ‘legacy’ automaker because of its: (1) Majority of earnings from Truck Franchise (~$90 SoP); (2) Unique (Top Pick) EV accretion setup; (3) Ample growth levers, strong execution and AV/AI optionality; (4) Buybacks.”
