New Street upgrades Tesla to Buy on auto growth, stabilizing margins - InvestingChannel

New Street upgrades Tesla to Buy on auto growth, stabilizing margins

New Street upgraded Tesla to Buy from Neutral with a $460 price target. The company’s growth in autos should reaccelerate with the launch of lower-cost models, and its gross margins stabilizing as Tesla “reduces costs as fast as prices,” the analyst tells investors in a research note. Meanwhile, New Street says Tesla’s full self-driving progress is accelerating, which strengthens the view that the company could launch a partially unsupervised version and robotaxi test fleets this year. While the road “is still long and arduous towards scale deployments,” the stock price will further reflect the opportunity, contends the firm. New Street sees “significant long-term upside,” up to a $4.7 trillion market cap in 2030, if Tesla moves the full self-driving opportunity towards a “dominant fleet of robotaxi.” It views the risk/reward of owning the stock as positive.

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