RBC Capital Reiterates Outperform Rating on Tesla (TSLA)

RBC Capital analyst Tom Narayan reiterated an Outperform rating and $440.00 price target on Tesla (NASDAQ: TSLA).

The analyst commented: "Post election, Tesla shares are up over 70%. While we do think the new administration could help with federal deregulation of self- driving vehicles, ultimately, the success of Tesla’s autonomy ambitions, especially as it relates to robotaxis, will come from how well FSD develops. Currently, while we do think the software is an excellent level 2+ product (probably the best in the industry), it is not clear that it will be ready for Level 4 camera-only robotaxi use near term. That said, Waymo’s upcoming deployment of its service in Miami using its own app does suggest it could be possible for Tesla to capture a substantial market, particularly in the US, of a closed loop robotaxi service. Near term catalysts could include FSD adoption increasing (which could translate to higher margins) near term. We think this could be helped with price cuts. We maintain our $440 PT and Outperform rating."

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $412.38 yesterday.

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