Investment bank Benchmark added Tesla (TSLA) to its Best Ideas List but cut its price target on the shares to $350 from $475, Schwab Network reported today.
Benchmark believes that the recent decline of the stock has been “overdone.”
Why Benchmark Is Bullish on TSLA
Benchmark, which kept a Buy rating on TSLA, believes that the new EV which the company plans to release later this quarter may significantly boost its deliveries.
Further, the investment bank is “cautiously optimistic” about the upcoming launch of the company’s robotaxis. The latter initiative is expected to kick off in June.
Also importantly, Benchmark expects TSLA to benefit from the fact that it manufactures many of its EVs in the U.S. As a result, tariffs are likely to harm the automaker to a lesser extent than many of its peers, the investment bank believes.
Finally, the company’s Optimus robots could allow it to become “a broad automation provider,” according to Benchmark.
The Recent Price Action of TSLA Stock
In the last month, the shares are down 7%, while they have sunk 41% in the last three months.
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This article is originally published at Insider Monkey.
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