Investment analyst Victor Dergunov has upgraded Tesla Inc. (NASDAQ:TSLA) from buy to strong buy, citing CEO Elon Musk's conviction and growth potential in EVs, AI, and energy. The upgrade comes amid projections for strong Q3 results and a recent stock breakout. Dergunov sets a 12-month price target of $650 and long-term targets up to $3,500.
Victor Dergunov, an active investor with over 20 years of experience, recently upgraded Tesla Inc. (NASDAQ:TSLA) from a buy to a strong buy rating in an analysis published on October 16, 2025. The decision is driven by several key factors, including CEO Elon Musk's 'enormous conviction' in the company, highlighted by his recent trillion-dollar compensation plan and open market activities.
Tesla's stock has shown positive technical momentum, recently breaking out above key resistance levels followed by a constructive pullback. Dergunov notes that further dips below $400 could offer additional buying opportunities for portfolio allocation.
Looking ahead, Q3 sales and earnings are projected to exceed consensus estimates, with revenue at $29 billion and earnings per share at $0.70. These figures support a bullish outlook, potentially leading to new all-time highs for the stock.
Dergunov sets a 12-month price target of $650 for TSLA, with long-term targets ranging from $2,500 to $3,500, based on enormous intermediate- and long-term sales and earnings growth potential in electric vehicles, full self-driving (FSD) technology, AI, and energy sectors. Record EV deliveries further bolster this view.
However, the analyst acknowledges risks, including execution challenges, increasing competition, and high valuation concerns. Dergunov discloses a beneficial long position in TSLA shares through ownership, options, or derivatives, and states that the article expresses his own opinions without external compensation beyond Seeking Alpha.