Tesla stock rises as Stifel gets bullish on FSD, robotaxis

Core Viewpoint - Tesla's stock has shown resilience with a recent price target increase by Stifel's analyst, reflecting confidence in its Full Self-Driving (FSD) technology and robotaxi services [1][4]. Group 1: Stock Performance - Tesla stock rose 3% in early trading on Monday following a challenging week [2]. - The stock had previously dropped 5.9%, closing at $404.35 after hitting lows not seen since September [6]. Group 2: Analyst Insights - Analyst Stephen Gengaro raised Tesla's price target to $508 from $483, maintaining a Buy rating based on a sum-of-the-parts analysis [1]. - Gengaro emphasized the importance of Tesla's AI-based FSD technology and robotaxi initiatives in the company's valuation [1]. Group 3: Full Self-Driving (FSD) Technology - Gengaro noted that Tesla's advanced AI technology will enhance FSD's decision-making capabilities and improve its performance in tasks like parking [3]. - The Cortex AI training cluster at Giga Texas is expected to accelerate FSD improvements [3]. Group 4: Robotaxi Service - Gengaro is optimistic about the rollout of Tesla's robotaxi service, which is currently operational in Austin and the San Francisco Bay Area [4]. - Plans are in place to expand the robotaxi service to 8 to 10 metropolitan areas by the end of 2025 [5]. Group 5: Automotive Business Concerns - There are concerns regarding Tesla's automotive business, particularly falling gross profit per vehicle and stagnant average selling prices [5]. - The introduction of cheaper "standard" edition Model Y and Model 3 EVs is expected to mitigate the impact of lost EV tax credits [5]. Group 6: Notable Shareholder Activity - Peter Thiel's hedge fund significantly reduced its Tesla stock holdings, selling 207,613 shares in Q3, which represents a 76% decrease in its overall position [7].