New Street Research Lifts Tesla Price Target to $520 Amid Record Deliveries

New Street Research has raised its price target for Tesla (NASDAQ: TSLA) shares to $520, an increase from $465, while maintaining a "Buy" rating on the electric vehicle and clean energy company. The upgrade, announced by analyst Pierre Ferragu, reflects the firm's continued confidence in Tesla's operational strengths and long-term growth prospects, particularly in its advanced technology sectors. This adjustment follows a period of significant market activity and financial disclosures from the automaker.

The revised target comes as Tesla reported record vehicle deliveries for the third quarter of 2025, reaching 497,099 units, a figure that surpassed analyst expectations. Total revenue for the quarter also saw a 12% year-over-year increase, climbing to $28.10 billion and exceeding market forecasts. These robust delivery numbers were partly influenced by a pull-forward in demand, as consumers sought to purchase electric vehicles before the expiration of federal tax credits.

Despite the strong top-line performance, Tesla's adjusted earnings per share for Q3 2025 stood at $0.50, falling short of analyst estimates of $0.54. Net income experienced a 37% decline compared to the previous year, a result attributed primarily to lower average selling prices for its vehicles and increased operating expenses, including substantial investments in artificial intelligence and research and development initiatives. Conversely, the company's energy generation and storage business demonstrated significant growth, with revenue surging by 44%.

New Street Research's bullish outlook is largely underpinned by the anticipated impact of Tesla's Full Self-Driving (FSD) technology and the eventual deployment of robotaxi fleets. Analyst Ferragu has consistently highlighted Tesla's technological leadership and the strong demand for its premium vehicles as key drivers. The firm believes that advancements in FSD and the expansion into autonomous ride-hailing services will unlock considerable long-term value for the company.

Analyst rating upgrades, such as this one from New Street Research, can often generate positive momentum for a stock's price in the short term by influencing investor sentiment. However, the sustained impact typically depends on the company's fundamental performance and broader market conditions. Investors often consider such ratings as one of many factors when evaluating investment decisions, alongside the company's financial health and strategic direction.