Investing.com -- JPMorgan upgraded Tesla (NASDAQ: TSLA) to Neutral from Underweight on Friday, establishing a December 2027 price target of $475, a sharp increase from its prior target of $145, arguing that the electric vehicle maker’s ambitions in autonomous vehicles, humanoid robotics, and energy storage are underappreciated by investors.

The move centers on Tesla’s degree of vertical integration across hardware and software, which JPMorgan analysts described as "unmatched at an industrial level scale."

The analysts, led by Rajat Gupta, drew parallels to Amazon’s development of AWS and its Kiva robotics subsidiary, noting that Tesla’s use of its own factories as a testing ground for its Optimus humanoid robot could simultaneously lower manufacturing costs and validate the product for broader commercial sale.

Tesla’s robotaxi service, which launched in Austin in June 2025 and has since expanded to Dallas, Houston, and the Bay Area, also drove the upgrade. With roughly 10 billion Full Self-Driving (FSD) miles recorded and approximately 9 million Tesla vehicles on the road globally, JPMorgan sees significant network-effect advantages building in Tesla’s favor as autonomous driving capabilities improve.

The bank projects Tesla’s revenue will grow from $95 billion in 2025 to $203 billion by 2030, with services including robotaxi revenue, Optimus sales, and FSD licensing accounting for roughly half of that growth.

Earnings per share are expected to reach $7.50 by 2030, reflecting a meaningful inflection point beginning in 2028. Free cash flow is not expected to turn positive until 2029.

Commenting on valuation, the analysts conceded that the stock’s current multiples are "undeniably lofty on near-term earnings.” However, they argued Tesla “deserves the benefit of the doubt to be valued on long-term earnings potential given the majority of these new total addressable markets (TAMs) are unlikely to inflect until 2029+.”

The analysts also flagged that near-term index rotation toward faster-growing stories could weigh on the stock, potentially offering investors "a better entry-point to re-engage or add."

In the near term, the direction of the shares would likely be driven by progress on robotaxi and Optimus alongside improving clarity on the company’s earnings trajectory, they added.