Tesla Poised for 12% Rally as Profit Margins Improve, Analyst Says
A 24/7 Wall St. analysis published on Yahoo Finance predicts Tesla (TSLA) stock has 12.39% upside to a $439.50 price target over 12 months, citing improving automotive gross margins (21.1% in Q1 2026 vs 16.2% prior), strong FSD subscriber growth (1.28 million, up 51%), and a 117% jump in free cash flow to $1.44 billion. The stock trades at $391.06, 15% below its 52-week high. Catalysts include Cybercab production, Semi ramp, and unsupervised FSD rollout. The bull case targets $492.94 (26% return), while the bear case is $383.32. The analysis contrasts Tesla's premium valuation (P/E 357) with Rivian's projected $2B EBITDA loss and Ford's $55.5B market cap despite higher revenue, framing Tesla as an autonomy and robotics bet. Risks include high operating expense growth (37% YoY) and notable insider selling.
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