Jefferies raises Tesla price target as resilient deliveries support automotive outlook Proactive Mon, October 12, 2026 at 10:44 AM EDT 2 min read TSLA -0.67% Trade Tesla on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Jefferies has raised its price target for Tesla Inc (NASDAQ:TSLA), the electric carmaker, to $400 from $350, as resilient vehicle deliveries and improving prospects for non-automotive businesses offset concerns over rising investment and operating costs.
Analyst Philippe Houchois maintained a 'hold' rating, with the revised target implying 5% upside from Tesla's closing price of $382.70 cited in the 12 October research note.
Jefferies expects third-quarter revenue of $29.2 billion, an automotive gross margin of 16.7% and adjusted operating profit of $781 million, while forecasting cash outflow of about $5 billion.
Tesla delivered 486,532 vehicles during the quarter, up 1% from the previous three months but down 2% year on year, with its Model 3 and Model Y accounting for 478,200 deliveries.
The broker said demand across China, Europe and the United States had proved resilient, reflecting Tesla's competitive value for money as well as lower comparison figures in some markets and higher fuel costs in Europe.
Production reached 464,400 vehicles, leaving output below deliveries, although Jefferies expects year-to-date production and deliveries to remain broadly aligned and support working capital.
The broker forecast automotive revenue of $21 billion, with a limited contribution of $140 million from regulatory credits, while stronger software uptake and improved vehicle resale values could support margins.
However, sustained research and development and selling costs are expected to weigh on profitability, while capital expenditure of $8 billion underpins Jefferies' forecast of substantial cash outflow.
Jefferies has cut longer-term estimates because of the limited range of new vehicle models, slower energy-storage growth and the likelihood that newer ventures will initially generate losses.
The bank nevertheless sees improving prospects for full self-driving software, energy storage and robotaxis, while Tesla's semi-truck programme is moving into production despite limited visibility over orders.
Houchois also highlighted the possibility of a future merger with SpaceX Corp (NASDAQ:SPCX), arguing that overlapping technology ambitions, investment requirements and Elon Musk's preference for retaining control could strengthen the strategic case.
The price-target increase therefore reflects potential value from Tesla's broader technology ambitions rather than a clear improvement in its near-term earnings outlook.
