Gary Black, Managing Partner of The Future Fund, outlined the two main factors giving the Tesla Inc. (NASDAQ:TSLA) stock a boost.
Check out the current price of TSLA here.
TSLA Stock Drivers
The first catalyst is growing optimism that Tesla, along with a few other companies, is nearing a breakthrough in unsupervised autonomy, according to a post by Black on X.
The second factor is the strong belief that shareholders will approve CEO Elon Musk’s $1 trillion compensation package at the upcoming Annual Meeting.
Still Cautious
Despite these positive developments, Black remains cautious due to Tesla’s extended valuation, which is projected to have a 2026 price-to-earnings (PE) ratio of approximately 200x compared to an annual long-term earnings growth of 35%.
Black states that investors might be overly optimistic about the speed at which Tesla can deploy Level 4 and Level 5 unsupervised robotaxis across other states without safety monitors.
The analyst has a 6-12 month price target of $310 for the Tesla stock, implying a downside of 32% from the closing price on Friday.
State Of Tesla's Robotaxis
Currently, Tesla’s robotaxis are operational only in Austin and the San Francisco Bay Area, with 150 robotaxis in service.
The major catalyst for Tesla’s future growth is the removal of safety monitors from all robotaxis, a move that would indicate an imminent scale-up. Musk has set a target to achieve this in Austin by the end of the year.
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Tesla's Q3 Performance
Black’s comments come on the heels of Tesla’s third-quarter results, which showed record electric vehicle deliveries but also highlighted declining profits. Analysts remain divided on the company’s future, with some predicting significant stock price increases.
Additionally, the endorsement of Musk’s compensation package by the State Board of Administration of the Florida Retirement System has further bolstered investor confidence.
The agency, which manages over $280 billion in assets, views Musk’s pay structure as a bold incentive that could lead to substantial value creation if Tesla meets its outlined metrics.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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