Optimistic Valuation of Tesla Stock by Deutsche Bank
Deutsche Bank has maintained a “Buy” recommendation for Tesla stock and set a target price of $345, significantly above the current price of around $259. This optimistic assessment is based on several key factors:
Reasons for the Buy Recommendation
- New Model by Mid-2025: Tesla plans to introduce a more affordable vehicle that aims to boost sales and tap into new customer segments.
- AI and Mobility Platform: Deutsche Bank sees Tesla not just as a car manufacturer but as a technology company with a strong focus on artificial intelligence and connected mobility solutions.
- Lower Tariff Risks: Compared to traditional automakers like GM or Ford, Tesla is less impacted by trade tariffs, thanks to a globally diversified production structure.
Critical Opposition
While Deutsche Bank remains optimistic, JPMorgan assesses the stock with a conservative target price of only $115. This discrepancy reflects uncertainties arising from the demand trends in electric vehicles and operational margin pressure.
Current Challenges
The stock price is currently suffering from delays in autonomous driving, fluctuating demand in key markets, and increasing competitive pressure in the electric vehicle sector. Nevertheless, Deutsche Bank sees long-term potential due to Tesla’s innovative role in e-mobility and its advanced software capabilities. Crucially for investors: The projected target price of $345 implies an upside potential of over 30% compared to the current level.