Freedom Capital Markets on Thursday raised its 12-month price target for Tesla (NASDAQ:TSLA) to $440.00 from $406.00, while leaving its rating on the electric vehicle maker at Hold. Tesla was trading at $424.32 at the time of the report and is noted to carry an earnings multiple of 291.8x, with the share price sitting well above a reported Fair Value.
The brokerage attributed the target bump to Tesla’s fourth-quarter 2025 results, which it described as slightly ahead of consensus expectations. Over the trailing twelve months the company recorded $94.8 billion in revenue. At the same time, Freedom Capital Markets highlighted a relatively weak gross profit margin of 18.03 percent. The firm nevertheless emphasized Tesla’s solid balance-sheet position, noting the company holds more cash than debt.
Despite the modestly better-than-expected quarter, the research house warned that demand difficulties in the electric vehicle market are expected to continue into 2026. It characterized near-term auto market trends as a headwind for Tesla’s core vehicle business.
Offsetting those concerns, Freedom Capital Markets pointed to advancing work on Tesla’s Robotaxi program. The firm indicated the program could start to show clearer traction in 2026 as the fleet ramps up quickly, potentially becoming an increasingly important factor in Tesla’s outlook.
Other brokerages have also reacted to Tesla’s fourth-quarter performance with divergent views. Stifel maintained a Buy rating with a $508 price target. Cantor Fitzgerald reaffirmed an Overweight view and a $510 target, citing strong deployment in the Energy Generation & Storage segment. TD Cowen raised its target to $519 and highlighted robust margin performance and updates on RoboTaxi initiatives. Piper Sandler kept an Overweight rating, pointing to Tesla’s strategic pivot toward autonomous vehicles and robotics and noting the discontinuation of the Model S and Model X to prioritize humanoid robot production. Needham reiterated a Hold rating, acknowledging disciplined execution in the automotive business and progress in artificial intelligence initiatives.
Quarterly metrics drew broad attention: revenue, gross profit, and operating income all beat projections, and automotive margins excluding regulatory credits outperformed expectations despite a $500 million tariff impact in the fourth quarter of 2024. These mixed signals have produced a range of price targets and ratings across the analyst community while leaving some firms cautious and others more bullish.
Freedom Capital Markets’ maintained Hold rating together with an increased price target reflects that cautious balance - recognizing both the company’s solid financial footing and margin strengths, and the lingering demand uncertainties for electric vehicles. The firm’s emphasis on Robotaxi progress as a potential offset signals where it sees material upside if execution accelerates in 2026.