Asset management giant Baird believes Tesla (TSLA) has more room to run, raising its outlook on the stock with artificial intelligence front and center.
In a note, Baird analyst Ben Kallo says the firm is upgrading its outlook on the electric vehicle maker to Buy from Hold, reports Barron’s.
Kallo also boosts TSLA’s price target from $320 to $548, citing a larger shift from AI software to robotics and self-driving technology. According to Kallo, there is a “physical AI inflection ahead.”
The analyst points to catalysts including the expansion of Tesla’s robo-taxi service, unveiling of its humanoid robot Optimus, other “bots,” and growth in the company’s energy storage business.
“The road ahead is chock-full of catalysts.”
He also argues that Tesla’s valuation should be measured against long-term earnings potential. His new target values the company at 63 times estimated 2029 EBITDA (earnings before interest, taxes, depreciation, and amortization), compared with about 18 times estimated 2026 EBITDA for other members of the Magnificent Seven.
Wedbush Securities is also bullish on TSLA, and it maintained its $500 price target for the firm. Dan Ives, the global head of tech research at the $5.7 billion wealth manager, estimated Tesla’s AI and autonomous opportunity is worth $1 trillion by itself, with the potential to double if stars align.
As of Friday’s close, TSLA is valued at $425.
Robert W. Baird & Co. is a privately held, employee-owned financial services firm headquartered in Milwaukee, Wisconsin, where it was founded in 1919. As of June 30, 2025, Baird manages over $525 billion in client assets across its wealth management, asset management, banking, and capital markets businesses.
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