JPMorgan upgraded Tesla to Neutral from Underweight with a price target of $475, up from $145. The firm says Tesla is at the "forefront of physical AI" and entering "uncharted" total addressable markets. The company has an "unmatched" advantage from its industrial level scale, vertical integration across all the hardware and software products it builds, and speed of technology development, the analyst tells investors in a research note. It believes these are "somewhat under-appreciated" in Tesla shares. JPMorgan sees an earnings "inflection" for Tesla in 2028, with a 50% annual growth rate through 2030 and beyond. The stock's valuation on near-term earnings "is clearly lofty," but Tesla "deserves the benefit of the doubt" on long-term earnings given that its new markets are unlikely to inflect until 2029.
