Tesla Stock Surges on Analyst Upgrade and AI Leadership Focus

Tesla shares rallied in pre-market trading after Robert W. Baird analyst Ben Kallo upgraded the stock to 'Buy' from 'Hold' and raised his price target by 71% to $548. The new target implies a 31.5% upside from current levels, despite near-term delivery headwinds.

Kallo's bullish thesis centers on Tesla's dominance in physical AI applications, including robotics and autonomous driving. The analyst highlighted CEO Elon Musk's $1 trillion compensation package as a key alignment mechanism for long-term growth, with bull-case projections reaching $3,000 per share by 2035.

Upcoming catalysts include the Optimus robot unveiling and manufacturing expansion. While 2025 delivery estimates remain uncertain, the upgrade reflects growing institutional confidence in Tesla's technology roadmap beyond electric vehicles.