Citizens Analyst Rates Tesla Hold as Stock Surges 3.2% to $406.55; Warns Against Overoptimistic Near-Term Outlook

According to Barron's, Citizens Securities analyst Andrew Boone issued an initial coverage report on Tesla on Thursday, rating the stock a hold without a price target. Boone acknowledged Tesla's "unlimited" potential in physical AI applications like Robotaxi and humanoid robots but cautioned that near-term market expectations may be too optimistic. He noted that while these businesses have substantial growth potential, meaningful revenue and profitability contributions remain years away, with Robotaxi adoption risks potentially disappointing investors.

Tesla's stock rose 3.2% on Thursday to $406.55, bringing gains to approximately 65% since the company launched its Robotaxi service in Austin, Texas in June 2025. Despite the rally, only around 40% of analysts covering Tesla currently rate the stock a buy, below the typical 55-60% buy-rating average for S&P 500 constituents. Wall Street's average price target of $406, per FactSet, suggests limited near-term upside potential.