Financial Services Association, September 11 (Editor Huang Junzhi) Deutsche Bank (Deutsche Bank) seems to have taken a 180-degree shift in its view of Tesla: after a long period of bearishness, the bank restored Tesla's “buy” rating and listed it as the preferred stock for the automotive industry. Previously, the bank had always given a “neutral” rating.

In the latest report? Deutsche Bank analyst Edison Yu expressed a different opinion on Tesla's stock valuation. He believes Tesla is more than just a car company and has given a price target of $295. This means Tesla can still rise about 30.4% from current levels. He advised investors not to pay too much attention to the “temporary” disadvantages of delivery and profit margin trends.

Tesla shares rose 4.58% to $226.17 on Tuesday after this bullish report was released.

Yu wrote, “Essentially, we don't think of Tesla as a car manufacturer, but rather a technology platform that is trying to reshape multiple industries and deserves a unique valuation framework.”

He said the stock is worth a unique premium due to the potential of the autonomous driving and humanoid robot business. Additionally, the energy storage business was highlighted as being experiencing a major growth/margin inflection point and will generate $13 billion in sales in 2025.

“Vehicle delivery/profit margins have indeed declined in the short term, but we think this is temporary as new models/updated products are coming soon. In the long run, Tesla is an emerging leader in driverless taxis (Robotaxi) and the humanoid robot Optimus... they represent some of the clearest and most profitable applications of end-to-end artificial intelligence.” he wrote.

It's a coincidence. Recently, William Blair, an American multinational independent investment bank and financial services company, also said that Tesla's stock is worth buying because it has built an “Apple-style” energy ecosystem.

The company's analyst Jed Dorsheimer rated Tesla as “outperforming the market” and said the electric car maker's energy business was “underestimated” at a time when data centers continue to drive electricity demand growth and the rise of renewable energy.

Overall, Wall Street analysts gave Tesla a consensus rating of “hold.”

Unique valuation method

In detail, Yu said that his “unique” valuation method is a “multi-model” analysis that combines Tesla's four major themes. They are automobiles, energy storage, humanoid robots, and robotic taxis, respectively.

In terms of the automotive business, Yu expects to deliver 4 million vehicles by 2030. He used 8 times the value of the company to calculate revenue, which is similar to Apple's revenue multiples, “because the brand's appeal and influence are similar.”

Yu said that investors are well aware of the current pressure facing the electric vehicle market, but he believes that Tesla's trend in 2025 has room for improvement. This is partly due to the upgrading of the Model Y (Juniper version) in China and the growth of the Cybertruck business.

“We also expect Tesla to launch a new entry-level car ('Model 2'), and by not completely relying on a new platform, Tesla can bring this type of car to market more quickly.”

In terms of energy storage, he drew on 25 times the corporate value (profit before interest, taxes, depreciation, and amortization) of the American energy technology company Enphase Energy Inc.

“The energy storage business has experienced a major growth/margin shift,” which could lead to more than $13 billion in revenue in 2025, Yu said.

As for Tesla's humanoid robot ambitions, he believes the company will have 0.2 million robots by 2035, with an average price of 0.05 million dollars. So, considering Tesla's focus on artificial intelligence, he used a similar multiple to Nvidia's for this part of Tesla's business.

“In our framework, we see humanoid robots as a key part of a long-term solution to two major structural problems: US/European labor mismatch/shortage (and inflation), and unfavorable demographic trends in Asia.”