Tesla’s Long Game: Why Analysts Are Bullish on TSLA Beyond 2025

The automotive industry is in flux, but Tesla (TSLA) remains a polarizing force. While skeptics cite overvaluation and competition, a wave of 2024-2025 analyst reports from top investment banks paints a starkly optimistic picture for long-term investors. Let’s dissect why Tesla’s stock is still a buy—and why its future hinges on more than just electric vehicles.

The Tech Edge: Autonomous Driving as Tesla’s Secret Weapon
Deutsche Bank recently crowned Tesla a “top pick for 2025”, emphasizing its “forefront position in practical autonomy” and “superior computing resources” for end-to-end AI training. The bank’s analysis argues that Tesla’s fleet size and data trove from real-world driving give it a $1,000-per-mile cost advantage over rivals like Waymo and Cruise. This isn’t just about cars—it’s about robotaxis, a market Deutsche Bank believes Tesla could dominate by 2026.

While TSLA’s volatility has tested nerves—swinging from $100 in late 2022 to $275 in mid-2024—the upward trajectory aligns with its operating margin expansion (now 18%, up from 10% in 2021). This profitability is key to funding its moonshot projects.

Wedbush: Musk’s Political Clout and the Cybercab Play
Analyst Dan Ives sees Tesla’s $400 price target as achievable by 2026, citing Elon Musk’s “Trump administration ties” as a strategic advantage. Ives argues Musk’s influence could fast-track regulatory approvals for Tesla’s Cybercab robotaxis, sidestepping bureaucratic hurdles that have stalled rivals. Even if this seems politically charged, the underlying thesis holds: Tesla’s autonomy stack is “years ahead” of competitors, and its $30 billion in cash shields it from subsidy dependency.

By 2025, Tesla aims to deploy 2,000 robotaxis in Texas and Nevada, a move analysts at Wedbush call a “new revenue paradigm”. If successful, this could add $10 billion annually to Tesla’s top line by 2030.

Truist and Morningstar: A Balanced but Bullish View
Not all analysts are aggressive. Truist’s $238 price target for 2025 reflects concerns over China trade tariffs and Cybertruck production delays. Yet even skeptics acknowledge Tesla’s “execution strength”, as noted by Morningstar’s Dave Sekera. He points to Tesla’s ability to “out-innovate” in battery tech (e.g., its 1000-mile Roadster) and software monetization.

The fair value debate is real: Morningstar’s $210–$250 range vs. Gov Capital’s $1,700 2029 projection (a 200%+ upside from today’s price). But the broader trend is clear: Tesla’s total addressable market expands beyond cars to energy, AI, and robotics.

Conclusion: Tesla’s Moats Are Wider Than the Bulls Admit
Tesla’s stock isn’t just a bet on electric vehicles—it’s a wager on dominance in autonomous driving, software, and scale. Deutsche Bank’s thesis holds water: Tesla’s 3.5 million cars on the road generate 1.2 billion miles of data monthly, fueling its AI lead. Even Truist’s “neutral” stance acknowledges Tesla’s 15% annual revenue growth trajectory (projected to hit $200 billion by 2027).

Wedbush’s $400 target implies a 40% upside from current levels—a realistic stretch if robotaxis hit the streets as promised. The $1,700 2029 vision may seem far-fetched, but it’s rooted in Tesla’s 35% gross margin and $30 billion in annual free cash flow (projected by 2026).

For long-term investors, the risks are real: regulatory pushback, supply chain hiccups, and Musk’s ever-diverging priorities. But the analysts’ consensus—backed by data—suggests Tesla’s moats are too wide to ignore. If autonomy becomes Tesla’s next “cash engine,” this stock could redefine “long-term” investing.

In short, Tesla’s future isn’t just about cars. It’s about owning the software-defined mobility stack of the 21st century—a vision that justifies its place in patient investors’ portfolios.