By Rashika Singh
June 5 (Reuters) - J.P. Morgan upgraded Elon Musk-led Tesla to "neutral" from "underweight" on Friday, citing that the electric-vehicle maker's valuation is increasingly driven by its push into autonomous driving and robotics rather than near-term earnings.
The more optimistic view on Tesla comes as Musk pursues expansion across multiple technology ventures. Musk is also taking SpaceX public in what could become the largest IPO on record, with a valuation of roughly $1.7 trillion,
and an expected market debut on June 12.
Investors are looking beyond Tesla's slowing core electric-vehicle business and focusing on future growth opportunities, including robotaxis, humanoid robots, AI chips and software services that could reshape the company's earnings profile over the next decade, the brokerage said.
J.P. Morgan analysts led by Rajat Gupta, who took coverage of the stock last month, highlighted Tesla's unmatched level of vertical integration across hardware and software.
"We believe this aspect is still somewhat under-appreciated and misunderstood, but for the sheer starting-point advantage it brings."
Reflecting this optimism, J.P. Morgan hiked its price target on Tesla shares to $475 from $145.
The brokerage also estimates Tesla's earnings-per-share (EPS) to "potentially inflect" beyond 2028 and jump nearly threefold to about $7.50 by 2030 from roughly $1.95 in 2026.
Tesla reported adjusted first-quarter 2026 EPS of 41 cents.
Shares of Tesla were down marginally in early premarket trade on Friday.
The company's revenue is projected to more than double from about $95 billion in 2025 to roughly $203 billion by 2030, the brokerage said, with nearly half of that growth coming from services and newer businesses tied to autonomy and robotics.
Gupta values Tesla across five interlinked markets - automotive, energy storage, robotaxis, humanoid robots and infrastructure licensing with a combined potential addressable market of about $3.9 trillion by 2035.
The brokerage, however, warned that execution risks remain high, particularly around regulatory approvals, safety validation and scaling new technologies.
At least 24 analysts rate the stock "buy" or higher, 23 have a "hold" rating, and seven rate "sell" or lower, according to LSEG-compiled data.
(Reporting by Rashika Singh in Bengaluru; Editing by Sherry Jacob-Phillips)
