Tesla Stock Climbs After Stifel Raises Price Target to $508

Tesla stock rises on investment bank price target hike, driven by AI Full Self-Driving and expanding Robotaxi services amidst mixed market reactions to Elon Musk’s compensation plan

  • Tesla stock rose after an investment bank raised its price target.
  • The analyst highlighted Tesla’s AI-driven Full Self-Driving (FSD) and Robotaxi services as key growth areas.
  • Tesla is expanding its Robotaxi service in Austin and the San Francisco Bay Area, with plans for further metropolitan rollouts by 2025.
  • The recent approval of Elon Musk’s $1 trillion compensation plan has coincided with a decline in Tesla shares over the past month.
  • Other analysts remain optimistic about Tesla’s future, particularly in AI and autonomous vehicle technology.

Shares of Tesla (TSLA) increased on Monday following a difficult week of losses after Stifel, an investment bank, raised its price target for the company. Analyst Stephen Gengaro boosted the target from $483 to $508 while maintaining a Buy rating.

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Gengaro emphasized the importance of Tesla’s AI-based Full Self-Driving (FSD) technology. FSD is a system designed to allow vehicles to operate autonomously with minimal human input. He also highlighted the Robotaxi initiative, which offers paid autonomous ride services.

The Robotaxi service currently operates in Austin, Texas, and the San Francisco Bay Area. According to the analyst, coverage in Austin expanded three times since the initial launch in June 2025, though safety drivers remain present. Executives have indicated plans to extend Robotaxi operations to 8 to 10 metropolitan areas by the end of 2025.

Despite a 5% stock decline last week and a 7% drop in the past 30 days, other Wall Street analysts remain bullish. Wedbush’s Dan Ives described the AI and autonomous vehicle aspects as “the most important chapter ever in Tesla’s story” and assigned an Outperform rating with a $600 price target. He also referenced Elon Musk’s recently approved $1 trillion compensation plan as a positive signal for the company’s AI ambitions.

Elon Musk secured approval for his pay package, contingent on several upcoming sales milestones. This development has drawn mixed market responses, contributing to some recent stock declines.

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