Analyst sets price target for Tesla (TSLA) share for next 12 months

According to StoneX analysts, Tesla (TSLA) has room for a significant price increase. The investment bank is positive about a new credit facility of tens of billions of dollars, with which Elon Musk's company is preparing for major investments. Artificial intelligence and solar energy in particular seem to play an important role in this.

Analyst Mickey Legg therefore maintains his buy recommendation for the Tesla share. He expects the exchange rate to rise to $475 within twelve months. This would mean an increase of more than 34 percent from the most recent closing price.

The positive outlook follows Tesla securing a new $30 billion credit facility at the end of September. According to Legg, this is a sign that Tesla is preparing early for a period in which significantly more money is needed for investments.

The new financing space replaces an existing $5 billion facility. The package consists of a $2 billion credit facility with a maturity of 364 days, an $8 billion five-year facility and a $20 billion loan that Tesla can borrow at a later date.

It is striking that Tesla itself indicates that it does not want to use the credit facility in 2026. Nevertheless, StoneX sees the move as an indication that the company is taking much higher capital expenditures into account.

The price target of $475 is also clearly above the average expectation on Wall Street. According to TipRanks data, the average price target on October 2 was $391.40. The general opinion of analysts came to a moderate purchase recommendation.

The expected wave of investment is considerable. Tesla spent about $8.53 billion on capital investments in 2025. By 2026, that amount could reach more than $25 billion, according to plans.

An important part of this seems to be destined for infrastructure around artificial intelligence and solar energy. Elon Musk has previously said that Tesla and space company SpaceX want to work together to eventually reach an annual production capacity of 200 gigawatts of solar energy.

These ambitions require huge investments. As a result, analysts expect Tesla to spend almost ten billion dollars more in 2026 than it receives through free cash flow.

That makes the new credit facility important. This gives Tesla more financial space to carry out large projects without being directly dependent on new financing at the time the expenditure is actually made.

Tesla's plans fit into a broader development within the technology sector. Large companies are investing more and more money in artificial intelligence infrastructure, while it is not always clear how quickly those investments will become profitable.

As a result, investors are increasingly looking at free cash flow. Developments in the bond market and capital rounds at large technology companies, including Google, have also further increased the focus on the financing of AI investments.

For Tesla, the coming period is therefore not just about growth. The company must also show that the billion-dollar investments ultimately yield sufficient returns. For the time being, StoneX sees the new credit facility primarily as a proactive preparation for that next investment phase.