Mizuho Upgrade Propels Tesla's Stock: Analyst Projects $1.8 Trillion Valuation with Favorable Regulatory Winds

Tesla (NASDAQ: TSLA) shares experienced a notable uptick of 2% during the pre-market session on Tuesday, following an encouraging upgrade from Mizuho Securities.

Mizuho upgraded Tesla from 'Neutral' to 'Outperform,' raising its price target from $230 to $515 per share, valuing the company at $1.8 trillion. Analyst Vijay Rakesh cites a friendlier regulatory environment for autonomous driving, possible policy shifts under a Trump administration, and Tesla’s strong EV strategy as key drivers.

Rakesh sees Tesla leading global EV production growth, with its Full Self-Driving (FSD) tech potentially reaching Level 4+ approval in the U.S. by 2025 and Europe by 2027. He also forecasts Tesla’s humanoid robotics unit could sell 7.2M units by 2040, though this is below Tesla's own projections.

The removal of U.S. EV lease credits and Tesla's alignment with Trump’s policies may give the automaker a competitive edge. Despite EU tariffs and tax credit uncertainty, Rakesh believes Tesla is well-positioned to outperform rivals. Investors responded positively, reflecting confidence in Tesla's growth prospects.