Cantor Fitzgerald reiterated its "overweight" rating on Tesla (Tesla) on October 19th, along with a target price of $485, continuing to be optimistic about the company's development prospects after the launch of its new generation of high-performance electric sports car Roadster. Last week, Tesla unveiled this highly anticipated new vehicle, which is equipped with compressed gas propulsion technology originating from SpaceX, enabling it to hover briefly in mid-air, and claims that it can accelerate from rest to 60 miles per hour (about 96.6 kilometers per hour) in less than 1 second. Tesla CEO Elon Musk also announced that the production of the new Roadster is scheduled to begin in 2028.
The new Roadster demonstrates hovering and aerial flipping capabilities, with mass production planned for 2028.
During last week's product demonstration, the new Roadster showcased athletic capabilities that differ from those of traditional electric sports cars. Utilizing SpaceX's compressed gas propulsion technology, the vehicle accelerated down an arc-shaped ramp, soared into the air, performed a flip maneuver, and then safely landed back on the ground. During the demonstration, Roadster also managed to leap over several other models, including Tesla's Semi electric truck, demonstrating the propulsion system's control over the vehicle's trajectory.
The most notable technical feature of the new Roadster is its acceleration performance. According to Tesla, the vehicle is capable of accelerating from 0 to 60 miles per hour in less than 1 second and can achieve short-term hovering using compressed gas propellers. However, these capabilities are still mainly based on product demonstrations and company disclosures; the final performance, operating conditions, and road suitability of the mass-produced models remain to be further clarified.
Elon Musk stated that the production of the new Roadster is scheduled to begin in 2028. This means that, although the vehicle has already been publicly displayed, its commercial delivery will still have to wait for at least another year or so, and future production progress will become a focal point of market attention.
Cantor Fitzgerald Maintains Overweight Rating, Target Price of $485
Analyst Andres Sheppard maintains a positive outlook on Tesla after making an appearance in Roadster, reiterating the "overweight" rating and a target price of $485. Based on the current stock price of $354.72 mentioned in the article, this target price corresponds to a potential upside of approximately 36.7%.
However, Tesla's current valuation is still at a relatively high level. According to the data provided in the reports, the company's price-earnings ratio has reached 326.45 times. Considering that the new Roadster is not expected to start mass production until 2028, there is still uncertainty regarding its actual contribution to the company's revenue and profits in the short term.
Other institutions are more cautious in their assessment of Tesla. JPMorgan Chase maintains a ‘neutral’ rating and a target price of $415, while Goldman Sachs also keeps a ‘neutral’ rating with a target price of $360. Compared to Cantor Fitzgerald, these two institutions are more conservative about the further upside potential for Tesla’s current stock price.
Tesla released its financial report on October 21st, showing progress in its autonomous driving business in Europe.
In addition to the new Roadster, another important time point of concern for the market is Tesla's quarterly financial report, which is scheduled to be released on October 21. Investors will focus on the company's automotive business profitability, delivery prospects, and the commercialization progress of new businesses such as autonomous driving.
Meanwhile, there has been new progress in the promotion of Tesla's fully autonomous driving system ( FSD ) in Europe. Slovakia is close to approving Tesla's FSD system, and if approved, the country will become the ninth member state of the EU to approve this system, which will help further expand the coverage of Tesla's autonomous driving technology in the European market.
In the US market, California's recently introduced electric vehicle subsidy program has supported the purchase of nearly 12,000 electric vehicles, providing some demand support for the local electric vehicle market.
Overall, the launch of the new Roadster demonstrates Tesla's research and development achievements in high-performance electric vehicles and technological advancement, and it also provides new long-term growth expectations for the market. However, considering that mass production is not scheduled until 2028, Tesla's stock price in the short term will still be more influenced by this week's financial report, the profitability of its automotive business, and the progress of autonomous driving commercialization.
