Tesla Stock To Hit $3,000 In 2035? Analyst Says 'Road Ahead Is Chock-Full Of Catalysts'

Tesla Inc. (NASDAQ: TSLA) stock has been upgraded by an analyst following the announcement of a new pay package for CEO Elon Musk, which creates opportunities for shareholders.

The Tesla Analyst: Baird analyst Ben Kallo upgraded Tesla stock from Neutral to Outperform and raised the price target from $320 to $548.

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Analyst Takeaways: While Tesla’s vehicle segment has faced setbacks and declines, investors are likely looking to other segments of the company and future growth, Kallo said in a new investor note.

“Investor inbounds regarding long-term initiatives lead us to believe focus has increasingly shifted to the future for TSLA,” he said.

The analyst said there could be “physical AI inflection ahead,” with Tesla now viewed as a leader in the AI sector.

Kallo said the new proposed pay package for Musk has lofty goals and, like past versions, creates new incentives for Musk and the company for the next decade.

He noted that the new pay package is used in the model to present the latest opportunity for the company and is part of the reason for the upgrade and new price target.

Kallo breaks down the pay package milestones, which are based on Tesla’s market cap, product goals around vehicle deliveries, FSD subscriptions, Optimus Bot deliveries, robotaxis in operation and adjusted EBITDA.

“Assuming TESLA achieves these milestones in 2035 with volumes approximately equal to the minimums outlined in the pay package, we see a pathway for TSLA’s market cap to exceed $5.5 trillion.”

Based on comments from Tesla regarding its future revenue drivers and opportunities, as well as the new pay package milestone, Kallo estimates that Tesla stock could be worth between $1,400 and $3,000 in 2035. “The road ahead is chock-full of catalysts.”

Items highlighted by Kallo in the report include robotaxis, Musk’s pay package getting approved, the next generation of Optimus revealed, growth of the Tesla Energy business, launch of the Tesla Semi and more affordable electric vehicles.

The analyst said all these items are events that “could move the stock.”

The recent purchase of around $1 billion in Tesla stock by Musk is also highlighted by Kello as “a positive sign.”

Kallo said Tesla has “lots of irons in the fire” and numerous projects that can help with revenue growth.

TSLA Price Action: Tesla stock is up 1.5% to $423.29 on Friday, versus a 52-week trading range of $212.11 to $488.54. Tesla shares are up 11.6% year-to-date in 2025.

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