TLDR
- Stifel raised Tesla’s price target to $508 from $483, maintaining a Buy rating on the stock
- The firm cites progress on robotaxi development, with plans to expand to 8-10 metro areas by end of 2025
- Full Self-Driving Version 14 is performing well, with reasoning capabilities expected in versions 14.3 or 14.4
- Tesla launched Model Y standard at $39,990 and Model 3 standard at $36,990 to offset expired EV tax credits
- Stifel increased 2025-2026 EBITDA forecasts to $14.859 billion and $19.489 billion respectively
Stifel analyst firm increased its price target for Tesla stock to $508 from $483 on November 17, 2025. The firm kept its Buy rating on the shares.
The price target increase follows what Stifel called “strong” third quarter sales results. The new target is based on a sum-of-the-parts analysis that values Tesla’s core business along with its Full Self-Driving technology, robotaxi program, and Optimus robot projects.
Tesla currently trades at $404.35. The company has a price-to-earnings ratio of 281.7 and maintains $10.77 billion in EBITDA.
The firm expects some pressure on auto sales after the U.S. EV tax credit expired. However, Stifel believes Tesla’s progress on autonomous driving projects will drive future value.
Robotaxi Expansion Plans
Tesla plans to expand its robotaxi service to 8-10 metropolitan areas by the end of 2025. The company intends to launch robotaxis in parts of Austin without safety drivers by year-end.
Additional expansion targets include Nevada, Florida, and Arizona. These markets represent key growth opportunities for Tesla’s autonomous vehicle business.
The robotaxi service is viewed by Stifel as critical to Tesla’s long-term value creation. The firm’s analysts believe this technology represents a major revenue opportunity beyond traditional vehicle sales.
Full Self-Driving Updates
Tesla’s Full Self-Driving Version 14 is performing well according to Stifel’s analysis. The system uses 360-degree vision for various driving tasks.
Versions 14.3 or 14.4 will add reasoning capabilities to the FSD system. These improvements will enhance the software’s decision-making abilities, including tasks like selecting optimal parking spots.
The FSD updates represent ongoing refinement of Tesla’s autonomous driving technology. The company continues to roll out improvements to existing customers through over-the-air software updates.
Tesla responded to the EV tax credit expiration by introducing new lower-priced models. The Model Y standard now starts at $39,990 while the Model 3 standard is priced at $36,990.
Both vehicles offer over 300 miles of range. Stifel believes these competitively priced options could help offset lost demand from the expired tax credit.
The pricing strategy aims to keep Tesla vehicles accessible to buyers who previously relied on the federal tax incentive. This move positions Tesla to compete more directly with lower-priced competitors.
Stifel raised its financial projections for Tesla based on expected growth across multiple business segments. The firm increased its 2025 EBITDA forecast to $14.859 billion and its 2026 forecast to $19.489 billion.
The 2027 EBITDA estimate was adjusted slightly to $20.605 billion. These forecasts reflect expected revenue growth from vehicle sales, energy products, and emerging technologies.
Tesla’s EV/EBITDA ratio currently stands at 122.37. The company maintains more cash than debt on its balance sheet with a current ratio of 2.07.
In other company news, Tesla is recalling about 10,500 Powerwall 2 battery systems in the United States due to fire and burn hazards. The company received 22 reports of overheating, though no injuries occurred.
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