Victor Dergunov, a top-rated investor, has upgraded Tesla to a Strong Buy rating ahead of the company's Q3 2025 earnings report. He cites record deliveries, Elon Musk's commitment, and growth in AI and energy as key drivers. Despite acknowledged risks, Dergunov sets ambitious price targets for the stock.
Tesla Inc. (NASDAQ:TSLA) is set to release its Q3 2025 earnings on Wednesday, drawing significant market attention after a strong recovery in its share price. The stock has gained more than 90% over the past six months, rebounding from an earlier dip this year. Q3 deliveries reached 497,099 vehicles, marking a new company record and reversing a trend of declining year-over-year figures.
Analysts expect Q3 revenues of $26.58 billion and a normalized earnings per share of $0.55, representing sequential improvements. However, investor Victor Dergunov, ranked in the top 3% of stock professionals by TipRanks, sees even stronger potential. He estimates Q3 revenues could hit $29 billion, fueled by the recent Model Y refresh and robust demand.
Dergunov's optimism centers on CEO Elon Musk's engagement. Musk recently purchased $1 billion worth of Tesla stock on the open market, and a potential compensation package valued at around $1 trillion underscores his commitment. 'Tesla, Inc. is upgraded to a Strong Buy, driven by Elon Musk’s conviction, record EV deliveries, and transformative growth in AI, FSD, and energy,' Dergunov stated.
While highlighting risks such as EV competition, AI monetization challenges, and Musk's political activities, Dergunov remains bullish. He sets a 12-month price target of $650 and a long-term target of $2,500-3,500 for TSLA. 'A 12-month price target of $650 and a long-term target of $2,500-3,500 are set for TSLA stock, while acknowledging risks in execution, competition, and valuation,' he added.
Wall Street's consensus is more cautious, with a Hold rating based on 15 Buys, 13 Holds, and 10 Sells. The average 12-month price target of $365.82 suggests potential losses of about 17% from current levels.