Tesla (TSLA) Stock Soars as Benchmark Crowns It ‘Top Pick’—Robotaxi Hype Fuels Price Target Surge

Wall Street’s latest love letter to Tesla reads like a sci-fi script: Benchmark doubles down on TSLA as its ‘Top Pick,’ jacking up the price target on sheer robotaxi vaporware optimism. Because nothing fuels valuations like autonomous dreams and Elon’s timeline acrobatics.

The EV giant’s stock—already trading at meme-level multiples—gets another dose of rocket fuel as analysts bet the farm on a self-driving future that’s perpetually ‘18 months away.’ Meanwhile, legacy automakers quietly pivot to hybrids while counting their cash flows.

Cynical aside: If robotaxis print money half as well as TSLA prints dilution, shareholders might break even by 2035. Full autonomy achieved—in financial engineering.

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TSLA stock is down more than 19% year-to-date due to concerns over weak demand amid intense competition and macroeconomic challenges.

Benchmark Analyst Is Optimistic About Tesla’s Robotaxi

Benchmark analyst Michael Legg believes that while limited, Tesla’s robotaxi launch in Austin reflected “a controlled and safety-first approach.” The 4-star analyst added that impressing regulators and gaining a favorable public opinion are crucial, as they will enable the company to rapidly scale up its robotaxi service. Legg noted that new regulations for autonomous vehicles (AVs) are scheduled to take effect on September 1 in Texas, which he believes will further help win trust and drive expansion to additional cities.

Legg contended that while Alphabet’s (GOOGL) Waymo has a lead in the autonomous ride-hailing market, with operations in four cities and around 250,000 weekly rides, Tesla’s approach is more scalable. He also pointed out the higher cost of Waymo’s vehicles compared to Tesla’s Model Y.

The analyst highlighted that Tesla ended Q1 2025 with $37 billion in cash and generated over $600 million in free cash flow, which establishes that the EV maker has “plenty of fresh powder” to invest in growth opportunities. Overall, Legg is bullish on Tesla’s prospects and thinks that the Elon Musk-led company is “undergoing an evolution from a trailblazing vehicle OEM [original equipment manufacturer] to a high-tech automation and robotics company with unmatched domestic manufacturing scale.”

Expectations from Tesla’s Q2 Deliveries

Several Wall Street analysts have recently expressed concerns about Tesla missing Q2 deliveries expectations. However, Legg believes that the expected decline in TSLA’s Q2 deliveries is priced into the stock. He added that a rebound is expected in the second half of 2025.

Meanwhile, RBC Capital analyst Tom Narayan expects Tesla to deliver 366,000 vehicles in Q2, below the FactSet consensus of around 390,000 EVs. The 4-star analyst expects Q2 deliveries to increase sequentially due to the availability of the refreshed Model Y and plants operating at greater capacity. Narayan has a Buy rating on Tesla stock with a price target of $307.

Is Tesla Stock a Buy or Sell?

Wall Street has a Hold consensus rating on Tesla stock based on 14 Buys, 12 Holds, and nine Sell recommendations. The average TSLA stock price target of $291.31 indicates 10.6% downside risk from current levels.