Tesla is turning a long-term bear market into a bull market with a huge price target adjustment

Tesla (NASDAQ: TSLA) lost one of its biggest bears this morning as a long-time skeptic of the stock changed his narrative and price target to something significantly more bullish.

Roth MKM’s Craig Irwin upgraded Tesla shares to “Buy” from “Neutral” and increased the company’s price target on the stock from $85 to $380.

Irwin has long been a skeptic about Tesla. In December 2023, Irwin said Tesla was “monstrously” overvalued. Earlier this year, he said the company’s price war was over and maintained his “hold” rating on the shares in October.

Things have changed drastically.

Irwin raises his price target to $380 and suggests investors should buy the automaker’s shares, and there are several reasons why.

First, Tesla stands to benefit more than most companies from President-elect Donald Trump, who has already given CEO Elon Musk a role at the Department of Government Efficiency.

However, many analysts believe Musk’s close relationship with Trump will help move things along from a regulatory perspective, particularly when it comes to autonomous driving, which Tesla plans to introduce with its Cybercab in the coming years.

Trump’s repeal of the $7,500 electric vehicle tax credit is also actually seen as a positive for Tesla by many analysts, including Irwin. Wedbush’s Dan Ives has already said that this will help Tesla fend off competition from other automakers and that it will have a bigger impact on legacy automakers than anyone else.

The boost Tesla could feel from conservative voters, particularly after the election, could also be drastic, Irwin wrote in a note to investors this morning:

“Conservative voters’ enthusiasm for Tesla, which is made up of a largely new pool of buyers, should also stimulate demand.”

Irwin said the credibility of a 20 to 30 percent increase in deliveries in 2025 would be bolstered by adding a new group of consumers to Tesla’s potential customer list.

Conservative voters appear to oppose electric vehicles more often than Democrats, but Musk’s stance on Trump may have helped sway some right-wing voters to support electric vehicles, particularly those built by Tesla.

Tesla is trading at $354.46 on the East Coast as of 11:53 a.m.

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Tesla turns a bear into a bull with a massive narrative and a change in price target