Catenaa, Friday, June 05, 2026- A long-running bearish position on Tesla ends as JP Morgan lifted its rating on the stock to “neutral” from “underweight”.
The bank raised its price target on Tesla stock to $475 from $145. Coverage of Tesla at JP Morgan had recently passed to Rajat Gupta; his predecessor, Ryan Brinkman, had been among the more vocal skeptics on the stock and told investors to approach it with a “high degree of caution” as recently as two months before the upgrade.
In the note, Gupta’s team made the case that investors have come to anchor Tesla’s worth to its prospects in autonomy and robotics, a dynamic that has effectively decoupled the stock’s valuation from what the company earns in any given quarter.
The analysts cited Tesla’s level of vertical integration across hardware and software as a key competitive advantage. “We believe this aspect is still somewhat under-appreciated and misunderstood, but for the sheer starting-point advantage it brings,” they wrote.
The bank noted that market attention has shifted away from Tesla’s flagging automotive sales and toward an expanding portfolio of emerging businesses, among them autonomous ride-hailing networks, humanoid robotics, AI chip development, and software-based revenue streams.
To arrive at his valuation, Gupta mapped Tesla’s opportunity across five distinct but connected segments: cars, energy storage, robotaxis, humanoid robots, and licensing of infrastructure, which he estimated could represent a total addressable market approaching $3.9 trillion within a decade, according to Reuters.
On the revenue side, the analysts forecast that Tesla’s top line could reach around $203 billion by 2030, up from an estimated $95 billion this year, a figure in which services and businesses linked to autonomous and robotic platforms would account for close to half the total gain.
Still, the bank cautioned that the path to realizing those projections is far from certain, pointing to hurdles including winning regulatory clearances, demonstrating safety at scale, and successfully deploying technologies that are still maturing.
Tesla’s path to autonomous driving has faced scrutiny. Elon Musk acknowledged earlier this year that roughly 4 million Tesla vehicles would require new computers and cameras to ever achieve unsupervised Full Self-Driving, walking back years of assurances that existing hardware could be upgraded through software alone.
