Analyst Ratings January 29, 2026

Stifel Sticks with Buy on Tesla, Sets $508 Target After Q4 2025 Results

Analysts praise margin performance and RoboTaxi progress while cautioning on near-term margin pressures and valuation

By Hana Yamamoto TSLA
Stifel Sticks with Buy on Tesla, Sets $508 Target After Q4 2025 Results
TSLA

Stifel confirmed a Buy rating on Tesla and kept a $508 price target following the automaker's fourth-quarter 2025 report. The firm and other analysts pointed to stronger-than-expected revenue, gross profit and operating income, progress on Robotaxi and FSD developments, and significant capital plans for 2026. Market estimates for Tesla's value vary widely, and InvestingPro indicates the stock looks overvalued versus its Fair Value estimate.

Key Points

  • Stifel reiterated Buy and set a $508 price target for Tesla; analyst targets range from $130 to $600, and InvestingPro indicates the stock appears overvalued versus its Fair Value estimate.
  • Tesla beat estimates for revenue, gross profit and operating income in Q4 2025; automotive margins excluding credits exceeded expectations despite a roughly $500 million tariff impact in Q4 2024.
  • Company advancing Robotaxi deployments in Austin and the Bay Area with plans for seven additional metros in H1 2026, transitioning FSD to a monthly subscription, targeting Optimus 3 production by end-2026, and planning over $20 billion in capex for 2026.

Stifel has reaffirmed a Buy rating on Tesla (NASDAQ:TSLA) shares and maintained a $508.00 price objective in the wake of the company’s fourth-quarter 2025 results. That price target implies upside from Tesla’s then-current share price of $419.33. Analyst targets in the market range from $130 to $600, reflecting diverse views of the company’s near-term prospects.

Stifel and other firms said Tesla outperformed consensus on several key line items in the quarter. Revenue, gross profit and operating income all came in ahead of projections. Automotive margins excluding regulatory credits also surpassed expectations, despite Tesla reporting a roughly $500 million tariff impact in the fourth quarter of 2024.

Data referenced by InvestingPro show Tesla’s gross profit margin at 18.03 percent for the last twelve months, with consolidated revenue totaling $94.83 billion even as sales declined 2.93 percent year over year. InvestingPro also indicates that, on its Fair Value metric, Tesla presently appears overvalued versus that estimate.

Operationally, Tesla is advancing its Robotaxi program. The company has active Robotaxi initiatives in Austin and in the Bay Area and plans to launch service in seven additional metropolitan areas during the first half of 2026. Improvements in artificial intelligence capabilities were cited as supporting the company’s Full Self-Driving technology.

Stifel emphasized Tesla’s shift of Full Self-Driving to a monthly subscription model. The firm noted this change could exert pressure on automotive margins in the short term as revenue recognition and pricing mix adjust, but that it establishes a potential recurring revenue stream over the longer term.

The automaker also outlined ambitions tied to its humanoid robot program. Tesla expects to further develop the supply chain for Optimus 3 and aims to begin production by the end of 2026. Separately, company guidance points to capital expenditures above $20 billion for 2026. Management anticipates year-over-year growth in Energy Storage deployments, although that segment faces margin compression in 2026.

Market participants reacted to the quarter with a range of ratings and target revisions. Cantor Fitzgerald reiterated an Overweight rating and kept a $510 price target. TD Cowen raised its target to $519, calling out solid margin performance and positive updates on the RoboTaxi initiative as potential catalysts. Piper Sandler maintained an Overweight rating with a $500 target and highlighted Tesla’s strategic emphasis on autonomy and robotics, including the repurposing of Model S and Model X production capacity for humanoid robot work.

Other firms took more cautious stances. Needham reiterated a Hold rating while recognizing disciplined execution in Tesla’s core automotive business and progress in AI initiatives. Oppenheimer maintained a Perform rating and pointed to ongoing investments in a vertically integrated supply chain tied to the company’s Physical AI approach, which it said will take several years to fully play out.

On volume and deployment metrics, Tesla reported 1,636,129 vehicle deliveries in fiscal 2025, a decrease for the second consecutive year. The Energy Generation & Storage business recorded a company-high deployment of 46.7 GWh in the period.


Clear summary: Stifel confirmed a Buy rating and a $508 price target after Tesla’s Q4 2025 results, citing better-than-expected revenue and margin outcomes, Robotaxi and FSD progress, and planned investment and production milestones for 2026. Analyst estimates display a wide range and InvestingPro flags the stock as overvalued relative to its Fair Value estimate.

Risks

  • Valuation risk - InvestingPro shows Tesla as overvalued versus its Fair Value estimate, which could limit upside for equity investors in the broader technology and auto sectors.
  • Near-term margin pressure - Transitioning FSD to a subscription model and expected margin compression in Energy Storage in 2026 may weigh on automotive and energy segment profitability.
  • Execution and timeline uncertainty - Ambitious initiatives such as Optimus 3 supply chain development and planned production by end-2026, along with expansion of Robotaxi services, carry execution risk for the automotive, robotics and AI-related sectors.

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