Melius Initiates Tesla With Buy Rating and $520 Price Target, Calls Stock a ‘Must Own’

Font: Financial Modeling Prep  • Oct 13, 2025

Melius Research initiated coverage on Tesla Inc. (NASDAQ: TSLA) with a Buy rating and a $520.00 price target, citing the company’s unique positioning to harness the disruptive power of artificial intelligence across the automotive and manufacturing industries.

The firm said Tesla stood out as a “must-own” name, with the potential to reshape multiple trillion-dollar sectors as AI adoption accelerates through the 2030s. Analysts highlighted Tesla’s distinct advantage in compute access and hardware management, noting that these capabilities have become critical differentiators as computing power drives faster innovation cycles.

According to the report, Tesla and the broader Musk-led ecosystem—including xAI and SpaceX—have set a new benchmark in design and manufacturing by combining rapid iteration, vertical integration, and high-risk, high-reward execution. Melius also pointed to xAI’s swift build-out of data centers as a sign of unmatched scaling capability.

Analysts added that Tesla’s leadership in autonomous driving represented the first major manifestation of AI in the physical world and said the company’s deep manufacturing expertise positioned it better than most technology peers to capitalize on the next wave of robotics and automation.