Price Prediction: Tesla Poised for 12% Rally as Profit Margins Improve

Tesla is projected to rise about 12% over the next 12 months, as 24/7 Wall St. reiterates a $439.50 price target based on improving profitability metrics. The analysis, dated against the stock’s $391.06 trading level on July 16, 2026, assigns a “buy” recommendation with 90% model confidence. It says Tesla has pulled back from December highs, down 3.81% over the past week and 13.04% year to date, but still up 21.57% over 12 months and 15% below its 52-week high of $498.83. Q1 2026 revenue rose 15.78% year over year to $22.39 billion, while automotive gross margin expanded to 21.1% from 16.2%. Free cash flow jumped 117% to $1.44 billion, and FSD subscribers reached 1.28 million (+51%). The bullish case targets $492.94, citing Cybercab production starting, Semi ramps this year, and guidance of “over $25 billion” in CapEx for six factories in 2026.