J.P. Morgan Flips the Script with Massive Price Target Hike

In a dramatic reversal of one of Wall Street's most persistent bear cases, J.P. Morgan upgraded Tesla from "underweight" to "neutral" on Friday Reuters. Analysts led by Rajat Gupta signaled that Tesla's valuation is no longer tethered to near-term electric vehicle earnings but is instead being propelled by its aggressive pivot into autonomous driving and robotics Reuters. The brokerage backed this optimism by skyrocketing its price target from $145 to $475, a move that reflects a total addressable market for Tesla's various segments estimated at $3.9 trillion by 2035 Reuters.

While Tesla reported a modest adjusted first-quarter 2026 EPS of 41 cents, J.P. Morgan projects a significant financial inflection point after 2028 Reuters. The bank forecasts that EPS could jump nearly threefold to $7.50 by 2030, with revenues potentially doubling to $203 billion in the same period Reuters. This shift underscores a growing consensus that Tesla’s vertical integration in hardware and software provides a "starting-point advantage" that remains misunderstood by the broader market Reuters.

Robotaxi Expansion: Austin Goes Unsupervised, San Antonio Next

Tesla is rapidly scaling its autonomous ambitions in Texas, announcing Wednesday the rollout of unsupervised robotaxis in the greater Austin metropolitan area GovTech. To support this expansion, the company has filed applications to build a dedicated 56-stall charging hub in San Antonio GovTech. Unlike the public Supercharger network, this facility is designed exclusively for Tesla’s private ride-hailing fleet GovTech.

Despite the aggressive rollout, Tesla still faces a steep climb to catch industry leader Waymo. Currently, Tesla operates only 42 Robotaxi-branded Model Ys across Texas, compared to Waymo’s 477 vehicles in the state GovTech. Safety data also remains a point of scrutiny; Tesla has reported 17 robotaxi crashes in Austin, while Waymo has recorded 75, though Waymo's fleet covers a significantly larger operational footprint GovTech.

SpaceX Mania Sweeps Wall Street Ahead of Historic IPO

As the June 12 IPO date for SpaceX nears, Wall Street’s elite are rolling out the red carpet for Elon Musk. JPMorgan CEO Jamie Dimon hosted a massive investor roadshow at the bank's New York headquarters, interviewing Musk in front of 3,500 top-tier clients Business Insider. SpaceX is seeking to raise $75 billion at a valuation of approximately $1.75 trillion to fund its long-term goals of Mars colonization and lunar tourism Business Insider.

However, the path to index inclusion remains rocky. S&P Global recently reaffirmed that it will not change its entry requirements, effectively blocking SpaceX from a quick entry into the S&P 500 CNBC. This creates a divergence from the Nasdaq, which has already moved to fast-track SpaceX into the Nasdaq 100 CNBC. Analysts at Morningstar have cautioned that the $1.8 trillion valuation may be overextended, suggesting that the hype cycle could lead to volatility for early investors CNBC.

Market Watch

TSLA stock ended the week at $400.91, down 4.19% in Friday trading as broader AI and tech names faced a rotation into defensive sectors MarketBeat. The sell-off was exacerbated by a downbeat earnings report from Broadcom, which triggered a 4% slide in the South Korean Kospi and hit Tesla's peers in the semiconductor space CNBC. Despite the daily dip, the analyst community is shifting toward a more bullish stance, with 24 analysts now rating TSLA as a "buy" or higher Reuters.