J.P. Morgan Upgrades Tesla on Robotaxi, AI Bets

J.P. Morgan has upgraded Tesla to a "neutral" rating, signaling a strategic shift in how the company's valuation is perceived. The firm now believes Tesla's worth is increasingly tied to its ambitious ventures in autonomous driving and robotics, rather than solely on its current electric vehicle sales performance.

This recalibration comes as investors look beyond Tesla's core automotive business toward future growth opportunities. These include the development of robotaxis, humanoid robots, and AI-driven software services, which analysts suggest could significantly reshape the company's financial profile over the next decade.

Reflecting this enhanced outlook, J.P. Morgan has substantially increased its price target for Tesla shares, raising it from $145 to $475. The brokerage forecasts Tesla's earnings per share to experience substantial growth, potentially tripling to approximately $7.50 by 2030 from an estimated $1.95 in 2026.

Furthermore, J.P. Morgan anticipates Tesla's revenue to more than double, reaching about $203 billion by 2030, with nearly half of this expansion projected to originate from services and newer autonomy-focused businesses. Analysts see a combined addressable market of approximately $3.9 trillion by 2035 across Tesla's various sectors, including automotive, energy storage, and infrastructure licensing.