7 reasons one analyst says it's time to buy Tesla after its stock crash

• Tesla stock was upgraded to ‘Overweight’ by Cantor Fitzgerald amid its sharp decline.
• Analyst Andres Sheppard cites Tesla’s future projects like its Robotaxi and autonomous vehicles as growth drivers.
• Sheppard maintains a $425 price target, seeing 81% upside potential from the stock’s current levels.

It’s been a tough few months for Tesla, but even with the stock down 52% from its record high in mid-December, one analyst on Wall Street still sees the sharp correction as an opportunity.

Analysts at Cantor Fitzgerald led by Andres Sheppard upgraded the stock to”Overweight” from “Neutral” in a note on Wednesday, arguing that the recent share price decline represented an “attractive entry point” for investors.

“We believe the recent selloff represents an attractive entry point for investors with >12-month investment horizon (and who are comfortable with volatility,” Sheppard wrote.

He listed seven material catalysts that he sees boosting the stock in the long term. Those include:

1. “The introduction of Robotaxi segment (June 2025).”
2. “Rollout of FSD in China (started in 1Q25).” FSD refers to Tesla’s Full Self-Driving software package, which costs $8,000 per vehicle.
3. “Rollout of FSD in Europe (we expect 1H25 pending regulatory approval.”
4. “Introduction of lower-priced vehicle in 1H25 (we expect initial price of ~$30,000 inclusive of tax credit.”
5. “High volume production of Optimus Bot (2026).”
6. “Initial deliveries of Optimus to customers (we expect 4Q26E/1H26).”
7. “Introduction of Semi Truck.” The firm said it expects the truck to start production in the second half of this year or early 2026.

Sheppard wrote that his bullishness on Tesla was crystallized after he visited the company’s Gigafactory and AI data centers in Austin, Texas.

While the analyst does see headwinds for Tesla’s vehicle sales in the first quarter, noting CEO Elon Musk’s “polarizing politics,” he predicted future revenue upside from the company’s other endeavors, including self-driving vehicles and its energy storage business.

Regarding Tesla’s self-driving ambitions, Sheppard believes they can quickly take market share once they launch a network of Cybercabs, which is expected to begin in June in Austin.

“Waymo’s vehicles have reported >25M cumulative autonomous miles driven on public roadways as of 12/2024,” the analyst wrote. “Tesla on the other hand, has reported >3B cumulative autonomous miles driven (on supervised Full Self Driving).”

Sheppard also said that Tesla should benefit from the Trump administration’s plans to establish a regulatory framework for self-driving vehicles in the US.

Sheppard maintained his $425 price target for Tesla, representing a potential upside of 81% from current levels. Shares of the EV maker jumped about 4% on Wednesday to $235.01.