DZ Bank Upgrades Tesla From Sell to Hold: Is the Bear Case on Robotaxi Finally Cracking?

"A Sell-to-Hold upgrade in analyst-speak usually means the downside thesis has lost its teeth, even if the Tesla stock bull case isn't yet compelling."

"Tesla's FSD v14.3 cut inference latency by up to 20%, and the AI5 inference processor completed tape-out in April. Active FSD subscriptions reached 1.28 million, up 51% year over year."

"Tesla designs EVs, energy storage, and autonomy products including Robotaxi, Optimus, FSD, and Dojo. Q1 FY2026 revenue reached $22.387B, up 16% YoY."

DZ Bank raised its rating on Tesla from Sell to Hold with a $385 price target, reflecting a softening bearish stance. This upgrade follows a Q1 FY2026 earnings beat and the confirmation of Cybercab production. Tesla stock closed at $373.72, down 17% year-to-date but up 49% over the past year. The upgrade suggests a loss of conviction in the downside thesis, coinciding with progress in Robotaxi and FSD developments. Q1 FY2026 revenue reached $22.387B, with significant growth in active FSD subscriptions and free cash flow.

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