Deutsche Bank Assumes Coverage on Tesla With Buy Rating, Sees Major Long-Term AI Potential

Deutsche Bank analysts initiated coverage on Tesla (NASDAQ:TSLA) with a Buy rating and a price target of $295 on the stock. The analysts position Tesla not as a traditional automaker but as a transformative technology platform with the potential to disrupt multiple industries, meriting a unique valuation approach.

Deutsche Bank acknowledges that while Tesla's automotive deliveries and margins have faced short-term challenges, it expects these to be temporary, with new models and refreshes on the horizon. The analysts highlighted Tesla's strong leadership in battery electric vehicles (BEVs), particularly in terms of scale and cost efficiency, along with its significant global brand value.

Looking ahead, the analysts see Tesla as a frontrunner in autonomous driving and humanoid robotics, notably through its robotaxi initiative and the Optimus project. These AI-driven technologies, they believe, could be among the most lucrative future opportunities for the company.

Additionally, Tesla's energy storage division is experiencing significant growth and margin improvements, with the analysts forecasting it to generate over $13 billion in sales by 2025.