Due to Tesla's innovation and diversification, 24/7 Wall St. sees strong upside potential for the stock by the end of the decade.

What Happened? Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 4.4% in the afternoon session after the stock's positive momentum continued as reports revealed a significant Cybertruck purchase by Elon Musk's SpaceX.

TSLA shares dropped 73.6% from a peak of $409.97 on November 4, 2021, to $108.10 on January 3, 2023, in contrast to a peak-to-trough drop of 25.4% for the S&P 500. Sine then, the stock surged to a high of $479.86 on December 17, 2024, and is currently trading at $475.31

Tesla's stock-based compensation has surged by more than tenfold in the past 10 years to $2.45 billion TTM. Click here to read my latest analysis of TSLA stock.

Morgan Stanley cut Tesla to equal weight yet tweaked its price target to $425, saying valuation is stretched while 2026 volumes look choppy. Bank of America bumped its Tesla target to $471 from $341 while keeping a neutral rating, saying Robotaxi and Optimus are driving the bulk of its SOTP.

With a modest market cap of $22 billion, Rivian is evolving beyond its luxury niche as it gears up for substantial growth in vehicle production with

The analyst consensus currently calls for Tesla's revenue to grow 15% to $108.9 billion in 2026, and earnings per share of $2.25, which compares to a forecast of $1.65 for 2025. Tesla would still be outrageously expensive at that level of EPS.

Tesla, Inc. remains massively overvalued, trading at a $1.5T market cap and 15.5x TTM sales. Click here to read why TSLA stock is a Sell.

While Tesla stock hits records on robotaxi hype, Jed Dorsheimer of William Blair says the core EV market is only worth a fraction of the current $480 per share price tag.