Tesla’s stock saw modest gains in early Thursday trading, approaching its yearly high, following a notable price target adjustment from a prominent Wall Street analyst who cited the company’s advancements in robotics technology.
The electric vehicle manufacturer has experienced a remarkable surge in market value over the past month, gaining approximately $340 billion and rising 42.4%. This growth has been partially attributed to Elon Musk’s alignment with President-elect Donald Trump’s
administration.
While Tesla’s core business remains electric vehicle production, investors have consistently placed higher valuations on the company’s ventures in energy storage, autonomous driving technology, and robotics. Morgan Stanley’s Adam Jonas suggests Tesla could reach a $1.6 trillion market valuation in a bull case scenario, particularly if Musk’s connection to the new administration leads to a revaluation of the company’s artificial intelligence initiatives.
The company’s Optimus humanoid robot has begun limited deployment within Tesla’s energy storage division. During Tesla’s October earnings call, Musk emphasized the robot’s potential, describing it as “the most advanced humanoid robot by far” and suggesting it could become Tesla’s most valuable product.
Bank of America Securities analyst John Murphy raised his Tesla price target by $50 to $400 per share, highlighting the significance of robotics technology for Tesla’s upcoming cyber cab fleet, scheduled for launch next year. Murphy noted that Tesla aims to deploy 1,000 Optimus robots by the end of 2025, primarily in manufacturing operations.
The increased implementation of Optimus robots is expected to accelerate training and development while potentially reducing production costs and improving profit margins for the cyber cab program, which is projected to expand significantly in 2026. Currently, Optimus utilizes a small percentage of Tesla’s computing capacity, but resources allocated to the project are anticipated to grow as robotaxi technology matures.
Musk has demonstrated strong confidence in Tesla’s AI capabilities, announcing plans to increase capital expenditure to approximately $10 billion this year. He specifically mentioned the company’s commitment to developing its Dojo supercomputer, expressing optimism about competing with Nvidia in this space.
According to Murphy, Tesla holds a unique position in the humanoid robot market due to its comprehensive capabilities in AI development and high-volume production capacity. This advantage could be further leveraged through potential capital raising, taking advantage of Tesla’s recent stock price appreciation and trillion-dollar market valuation.
The analyst suggests that Tesla could benefit from raising additional capital through equity to fund expanded computing capacity for Optimus and other advanced technology initiatives. Such a move, Murphy believes, would likely receive positive reception from Tesla investors.
In premarket trading, Tesla shares showed a 0.12% increase, indicating an opening price of $358.36 per share. The company’s current market capitalization stands at approximately $1.1 trillion, reflecting investor confidence in Tesla’s diverse technological pursuits beyond traditional automotive manufacturing.
The focus on Optimus and robotics development represents a significant strategic direction for Tesla, potentially transforming the company’s operational capabilities while opening new revenue streams beyond its established electric vehicle business. As the company continues to advance its robotics and AI technologies, these initiatives could play an increasingly important role in Tesla’s future growth and market valuation.