Benchmark Reiterates Buy Rating on Tesla (TSLA)

Benchmark analyst Mickey Legg reiterated a Buy rating and $475.00 price target on Tesla (NASDAQ: TSLA).

The analyst commented, "Tesla reported 3Q25 revenue of $28.1B, above our $25.9B estimate and $26.5B FactSet consensus. Gross margin was 18.0% versus our 18.8% estimate and 17.5% consensus. We see a clean topline step-up with still-measured margins, as tariff headwinds, promotional pricing, and elevated warranty costs persist, in our opinion. Management noted total tariff impact over $400mm in Q3, split roughly evenly between auto and energy; automotive margin ex credits improved to 15.4% on lower material costs and better fixed-cost absorption as volumes rose. Energy posted record deployments, gross profit, and margins, with near-term headwinds from tariffs and competition partly offset by Shanghai Megafactory supplying non-US demand. We continue to view execution across autonomy, AI, and energy as intact. Maintain focus on affordability actions from refreshes, a clearer path to Robotaxi scale, and long-dated optionality as Optimus materialized. We reiterate our Buy rating and $475 Price Target and will revisit our model after we discuss with management today."

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Shares of Tesla closed at $438.97 yesterday.

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