Tesla Set For Rebound Thanks To Robotaxis And Strong Cash Flow: Analyst

Group 1 - Benchmark analyst Mickey Legg maintained a Buy rating on Tesla and raised the price target from $350 to $475, indicating confidence in the company's future performance [1] - Tesla is a Benchmark Top Pick for 2025, reflecting strong expectations for growth and market positioning [1] - The stock has experienced significant volatility, reaching a high of $488 in December and declining by 33% before rebounding by 54% from a low of $213 in April [3] Group 2 - New regulations for autonomous vehicles in Texas, effective September 1, are expected to enhance public trust and facilitate Tesla's expansion into additional cities [2] - Tesla's approach to autonomous vehicles, focusing on a camera-based system, is seen as cost-effective and scalable compared to competitors like Waymo, which has a higher average cost per vehicle [4] - The company is transitioning from a vehicle OEM to a high-tech automation and robotics firm, with plans for growth in the Robotaxi business, model refreshes, and Optimus robots [5] Group 3 - Tesla's balance sheet is strong, with $37.0 billion in cash and equivalents, and it generated over $600 million in free cash flow in the first quarter, indicating ample resources for future growth [6] - Projected second-quarter revenue is $22.7 billion with an EPS of $0.33, suggesting solid financial performance despite potential short-term challenges [6] - TSLA stock was up 0.39% at $328.79, reflecting positive market sentiment [6]