Benchmark has reaffirmed its Buy rating on Tesla (NASDAQ:TSLA) and left its price target unchanged at $475.00 as the electric vehicle maker embarks on a strategic transition expected to take place in early 2026. The $475.00 target implies roughly an 11% upside from the current share price of $426.46, though analyst price objectives on the stock vary considerably, spanning from $125 to $600.
The research firm described Tesla as prioritizing reinvestment and platform development rather than maximizing short-term earnings. That stance accompanies valuation metrics that suggest a stretched equity multiple: Tesla trades at a price-to-earnings ratio of 361. InvestingPro data cited by the research house indicates the share price is overvalued relative to its Fair Value.
Benchmark pointed to Tesla’s fourth-quarter results as evidence of operational resilience during the company’s transition. The firm noted sustained margins, growth in its energy business, and continued cash generation. On the balance sheet, Tesla is reported to have more cash than debt and a current ratio of 2.16. The company’s gross profit margin was recorded at 18.03%.
Calling 2026 an "investment year," Benchmark expects Tesla to accelerate spending across several strategic areas, specifically autonomy, artificial intelligence, robotics, and energy infrastructure. Even as investment increases, the company remains profitable: Tesla generated $3.79 billion in net income over the last twelve months on sales of $94.83 billion.
Benchmark reiterated its valuation framework for Tesla, noting that any near-term share price moves may be shaped by technicals and investor sentiment, while long-term value creation is tied to the company’s transformation into a "physical AI, software, and fleet-based platform rather than a traditional auto OEM." The firm also highlighted Tesla’s size and market behavior, with a market capitalization of $1.6 trillion and a beta of 1.89, reflecting volatility typical of growth-oriented technology companies.
Other items of corporate news and industry developments involving Tesla were also reported. The company announced a sizable expansion in solar manufacturing capacity, targeting an additional 100 GW, a move Benchmark framed as consistent with CEO Elon Musk’s stated vision for solar-powered data centers in space. Morgan Stanley separately reiterated an Equalweight rating on Tesla with a $415 price target.
In China, Tesla has opened an artificial intelligence training center aimed at improving local driving applications and assisted driving capabilities; the center’s launch was confirmed by Tesla Vice President Tao Lin. Additional disclosures noted in public filings and releases include emails from the U.S. Justice Department that link Tesla director Kimbal Musk to two women through interactions with Jeffrey Epstein. The documents, dated from 2012 to 2015, detail exchanges between Musk and Epstein regarding social gatherings and introductions.
Finally, related corporate activity was reported for SpaceX. The company, also founded by Elon Musk, is preparing for a potential initial public offering by engaging with non-US banks, expanding its financial outreach ahead of any such transaction.
For readers seeking more in-depth analysis of Tesla’s financials and long-term growth prospects, Benchmark’s commentary points to additional resources available through InvestingPro, including a Pro Research Report that examines the company’s metrics and strategic outlook.