Cantor Fitzgerald Reiterates an Overweight Rating and a $510 price Target for Tesla Stock
Cantor Fitzgerald’s latest update seems designed to spark interest ahead of the earnings report, rather than to seriously rethink Tesla’s investment outlook. Still, the analyst’s comments help put this year in perspective for the company.
Noting that EV deliveries (we already know the data from Tesla’s delivery report) and energy & storage deployment were below consensus estimates, the analyst declared this to be a “transformational year for the company,” driven by growth in robotaxis (autonomy), AI, and Optimus development (Cantor expects Optimus deliveries to start in the second half of next year).
What it means to Tesla investors
It’s definitely a transformational year, but it’s more of a natural evolution than a revolution. The best utilization of an electric vehicle (EV) is as a robotaxi, where their cost per mile advantage shines through. Meanwhile, the investments in AI are to support robotaxi and Optimus. In addition, there are significant synergies between Tesla’s energy & storage business and its EV batteries.
Investors shouldn’t look at any part of Tesla on its own. The changes happening at Tesla aren’t about robotaxis, AI, and Optimus taking over from EVs and energy and storage. Instead, these new technologies are meant to strengthen the company’s main businesses.
But until Tesla shows real progress with robotaxis and Optimus, the market will keep paying attention to short-term results like EV deliveries, energy and storage deployment, and now, cash burn. That’s just the reality of investing.
For long-term bulls, it really won’t matter, but don’t be surprised if the narrative turns to “cash flow” soon enough.