Benchmark initiates coverage of Tesla with a buy rating and $475 price target.

Benchmark analyst Mickey Legg launched coverage of Tesla Inc. with a buy rating centered on growth prospects via autonomous vehicles, robotics, and energy generation/storage, as its electric vehicles continue to roll out.

Even after rising 50% since the election of President Trump - and with Tesla (TSLA) Chief Executive Elon Musk now at the helm of the so-called Department of Government Efficiency, or DOGE - Legg said there's more room for the stock to run.

The Benchmark analyst set a price target of $475 for Tesla, which is based on 68.2 times its 2028 earnings before interest, taxes, depreciation and amortization (Ebitda).

Tesla's stock rose 4.7% on Wednesday despite losses in the broad equities market.

In the previous session, Tesla's stock price fell 6% to $328.50.

"The company has outlined a path for growth with a more affordable vehicle scheduled for 1H25, unsupervised full self-driving as a paid service this June in Austin, Texas, and Optimus robot production ramping through 2026 and beyond," Legg said in a research note.

Tesla's Robotaxi presents a "compelling opportunity" as well as its automation manufacturing business, Optimus, he said.

"Tesla's market leadership, near-term catalysts, strong management, and diversified business justify the stock's market premium," Legg said.

Also read: Tesla's robotaxi event is 'stunningly absent on detail,' sending stock lower

-Steve Gelsi

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