Tesla shares rose more than 5% on October 27, 2025, driven by Cantor Fitzgerald's upgrade of its price target to $510 per share. The analyst firm cited upcoming production milestones for Cybercab, Semi, and Optimus as key factors. Broader market gains and easing U.S.-China trade tensions also supported the rally.
On Monday, October 27, 2025, Tesla (TSLA) stock climbed significantly amid positive analyst sentiment following the company's third-quarter earnings. Shares gained 4.3% to 5.38% during the session, reaching $457.19 by mid-afternoon, according to reports from Investopedia, The Motley Fool, and Benzinga. This performance outpaced the broader market, where the S&P 500 added 1.2% and the Nasdaq surged 1.9%, bolstered by improving U.S.-China trade relations signaled by President Donald Trump.
Cantor Fitzgerald raised its price target on Tesla from $355 to $510, maintaining an 'Overweight' rating. Analyst Andres Sheppard highlighted Tesla's progress in artificial intelligence and robotics, noting volume production for the Cybercab, Tesla Semi, and Megapack 3 remains on track for 2026, with Optimus manufacturing lines starting next year. "Overall, we remain bullish on TSLA over the medium to long term," Sheppard wrote. "We continue to see meaningful future upside from Energy Storage & Deployment, FSD, Robotaxis/Cybercab, Semis, and Optimus Bots." The firm anticipates capital expenditures of $9.2 billion in fiscal 2025 and $12 billion in 2026 to support expansion in robotics, autonomous driving, and energy storage.
Tesla's Q3 results, reported the previous week, showed record revenue of $28.1 billion, beating estimates of $26.4 billion, though non-GAAP EPS of $0.50 missed the $0.54 forecast. Free cash flow reached nearly $4 billion, and cash on hand hit $41.6 billion. Other analysts echoed optimism: Morgan Stanley praised Tesla's full self-driving technology based on CEO Elon Musk's robotaxi comments, while nine firms, including Mizuho ($485 target) and New Street Research ($520), raised targets post-earnings, focusing on AI and autonomy potential.
Easing trade tensions provided additional tailwinds, as Trump expressed respect for China's President Xi Jinping and optimism for a deal, potentially reducing Tesla's $400 million tariff impact from Q3.