Tesla Stock 'Well Positioned To Deliver Robust Multi-Year Growth': Why Analyst Is Raising Price Target After Deliveries Miss

A Tesla Inc TSLA analyst sees upcoming revamped and new vehicle models helping to boost sales along with Full Self-Driving licensing potential, brushing aside the company's recent fourth-quarter delivery miss.

The Tesla Analyst: Tesla analyst Stephen Gengaro reiterated a Buy rating on Tesla. He also raised the price target from $441 to $492.

The Analyst Takeaways: The upcoming rollout of the "Model 2" from Tesla is a catalyst, Gengaro said in a new investor note.

Strong demand is anticipated for the lower-priced Model 2, according to the analyst. The introduction of this new vehicle could serve as a new way for Tesla vehicles to be more accessible to a wider range of consumers.

The analyst also highlighted the company's revamped Model 3 and a Model Y refresh as items that could boost vehicle sales, as reported by Investing.com.

"We believe Tesla is very well positioned to deliver robust multi-year growth in 2025-27+," Gengaro said in the note, as shared by Sawyer Merritt.

The analyst considers the potential removal of $7,500 in electric vehicle tax credits under the new White House administration as an advantage for Tesla over competitors.

Outside of vehicle sales, the analyst also highlights Tesla's Full Self-Driving and artificial intelligence initiatives that could bring value and revenue to the company and its shares.

"We also believe Tesla's AI-based Full Self-Driving initiative has the potential to generate significant value through both sales of FSD, possible licensing agreements, and a critical part of longer-term Cybercab initiatives."

The analyst's price target increase comes after the delivery miss and the company posting its first annual sales decline on a year-over-year basis. Analysts continue to debate what the short-term and long-term looks like for the electric vehicle leader with new vehicles, robotaxis and FSD among the most covered topics.

Tesla will report fourth-quarter financial results after the market closes on Jan. 29.

Price Action: Tesla stock was up 0.2% to $411.05 on Monday versus a 52-week trading range of $138.80 to $488.54. Tesla stock is up 71% over the last year.

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