Tesla stock up 2% even as Thiel cuts stake: here’s what analysts want you to do

Tesla stock traded higher on Monday after several analysts reiterated bullish views on the electric vehicle maker, citing optimism over its Full Self-Driving (FSD) technology and progress on the company’s long-anticipated robotaxi platform.

Tesla stock was up over 2% on Monday to trade at around $412.

Stifel analyst Stephen Gengaro raised his price target on Tesla to $508 per share from $483, maintaining a Buy rating.

The revised target implies roughly 26% upside from Friday’s close.

As per a CNBC report, Gengaro said Tesla’s latest efforts to upgrade its autonomous driving system with “reasoning capabilities”—allowing vehicles to find parking or make smarter navigation decisions—could help accelerate adoption.

“We believe TSLA is very well positioned to deliver robust multi-year growth in 2024–27+,” Gengaro wrote, highlighting Tesla’s continued software innovation and sales momentum.

Gengaro also cited Tesla’s third-quarter performance, where the company posted revenue of $28.1 billion, exceeding analysts’ expectations of $26.37 billion, according to LSEG data.

Although Tesla’s lower-cost vehicle lineup remains behind schedule, Gengaro believes its eventual introduction could help offset the expiration of the US electric vehicle tax credit.

Robotaxi could be a key profit driver

TD Cowen reaffirmed its Buy rating and $509 price target on Tesla following its Mobility Bus tour in Austin, which included a visit to Giga Texas and firsthand rides in vehicles running Tesla’s FSD Version 14.

The firm said the test rides were “smooth and impressive” and noted improvements in the system’s navigation and adaptability.

Analysts also met with Tesla’s investor relations team and came away with “added conviction” in their bullish thesis.

TD Cowen highlighted growing confidence in the Cybercab, Tesla’s planned autonomous taxi, which could become a key revenue driver.

The firm estimated that Cybercab’s cost per mile could reach $0.30, down from a prior forecast of $0.38, giving Tesla a potential price advantage over ride-hailing rivals and personal mobility options.

Thiel cuts stake, ARK reduces holdings

Investor moves in recent sessions underscored mixed sentiment around Tesla’s short-term outlook.

Peter Thiel’s fund cut its Tesla holdings to 65,000 shares, down from 272,613, while adding positions in Apple and Microsoft, according to recent disclosures.

Despite the reduction, Tesla remains Thiel’s largest investment, valued at $28.91 million and comprising 38.83% of the fund’s portfolio.

Meanwhile, Cathie Wood’s ARK Invest sold Tesla shares across four consecutive sessions from Nov. 7 to Nov. 12, paring exposure after the stock’s strong multi-month run.

In a separate development, Tesla CEO Elon Musk reignited tensions with Bill Gates, warning the Microsoft co-founder about his short position in Tesla stock.