Tesla Gets a Boost: TD Cowen Raises Price Target to $519, Citing Mixed Q4 Signals
In a note to clients on Thursday, analysts at TD Cowen lifted their price target for Tesla Inc. (TSLA) to $519 from $509, reaffirming a Buy rating on the electric vehicle pioneer's stock. The move reflects a nuanced assessment of the company's latest quarterly results, which presented investors with a familiar blend of breakthrough promise and persistent execution challenges.
The firm characterized Tesla's Q4 2023 outcome as largely aligning with its "balanced setup" view. On the positive side, Tesla delivered a solid beat on automotive gross margins, a key metric closely watched by the market. Furthermore, updates on the long-awaited RoboTaxi initiative were viewed as encouraging, signaling continued development in this high-potential segment.
However, these strengths were partially offset by two significant factors. Tesla's guidance for capital expenditures (capex) came in higher than some anticipated, suggesting substantial ongoing investments in manufacturing capacity, new models, and artificial intelligence infrastructure. More critically, the company again declined to provide a specific timeline for the release of its "unsupervised" Full Self-Driving (FSD) system to customers, leaving a major catalyst for future growth without a clear date.
"The margin performance demonstrates the underlying strength of Tesla's model, even in a competitive environment," the TD Cowen report noted. "Yet, the elevated capex and ongoing ambiguity around the FSD rollout remind us that the path to its next growth phase is both capital-intensive and uncertain."
The price target revision places TD Cowen among a growing number of Wall Street firms recalibrating their models for Tesla, as the company transitions from a pure-play EV manufacturer to a broader technology and energy company. The new target implies a moderate upside from Tesla's current trading levels.
Market Voices: A Split Reaction
Michael Chen, Portfolio Manager at Horizon Growth Fund: "This is a measured, reasonable take. Cowen isn't getting swept up in the hype but is acknowledging the operational discipline Tesla showed on margins. The RoboTaxi narrative is the long-term value driver, and any concrete progress there justifies a gradual re-rating."
Sarah Jennings, Independent Auto Industry Analyst: "Raising the target by a mere $10 feels like analysts are clutching at straws to maintain a bullish narrative. Where is the accountability on FSD? They've been 'two years away' for a decade. The capex guide tells the real story: this is a capital-hungry industrial business, not a capital-light software company. The valuation remains detached from this reality."
David Park, Retail Investor: "As a long-term shareholder, I appreciate the balanced view. It's frustrating not to have an FSD date, but the margin beat shows they can execute on the core business. The raised target gives me confidence to hold through the volatility."
This analysis is based on publicly available financial data and analyst reports. Investors are advised to conduct their own research.