Tesla (TSLA) Stock Gains as Top Analyst Names It a “Must Own” Stock

TLDR

• Tesla stock trades around $426, holding a technical uptrend that started in April 2025 and has doubled the share price since then
• Melius Research called Tesla a “must-own” stock heading into 2026, citing AI leadership and Full Self-Driving technology advances
• Elon Musk revealed Austin robotaxi fleet will only reach 60 vehicles in December, down from his earlier promise of 500 by year-end
• Support levels around $390-$410 remain intact while resistance sits at $460-$470, with weak volume suggesting cautious trading
• Mizuho Securities cut its price target to $475 from $500 on concerns about reduced EV subsidies in the U.S. and China

Tesla shares climbed 1.7% to $426.60 on November 27 as investors digested mixed signals about the company’s robotaxi ambitions and bullish analyst commentary. The stock has doubled since April, maintaining an uptrend despite recent volatility.

Tesla, Inc., TSLA

Melius Research issued a “must-own” rating for Tesla heading into 2026. The firm pointed to the company’s progress in artificial intelligence, Full Self-Driving technology, and in-house chip development as key reasons for optimism.

Analyst Rob Wertheimer wrote that Tesla’s strategic decisions from years ago “seem to be working well” while competitors struggle to catch up. He noted that assumptions about rivals quickly matching Tesla’s technology advances now appear less certain.

The timing proved helpful for bulls. Tesla had been testing the lower end of its trading range before Melius released its report.

Robotaxi Reality Check

Elon Musk announced the Austin robotaxi fleet would “roughly double next month” to about 60 vehicles. That number falls far short of his October promise of 500 robotaxis in Austin and 1,000 in the Bay Area by year-end.

Tesla hasn’t publicly disclosed exact fleet numbers. The revised target suggests the company remains behind its scaling ambitions. Musk had stated on an earnings call that Tesla would expand to eight to ten U.S. metro areas within a year.

Only three markets appear on track for 2025: Austin, the Bay Area, and possibly Phoenix. Rides in these cities still require safety monitors. Musk claims these supervisors will be removed by the end of next year, but regulatory approvals remain unclear.

The robotaxi pullback drew fresh questions from investors about Tesla’s autonomous vehicle timeline. Despite the scaled-back fleet size, shares rose on the news, suggesting the market had already priced in potential delays.

Technical Picture and Analyst Views

Tesla stock finds support in the $390-$405 zone. This range has attracted buyers multiple times in November. The broader S&P 500 gained nearly 4% over four sessions, helping Tesla stabilize.

Resistance sits at $460-$470, a previous supply zone that includes the 50-day and 100-day moving averages. A sustained break above $470 would signal renewed strength. Below $400 could open a path toward $370.

Daily trading volume has declined from third-quarter peaks. The Relative Strength Index sits in neutral territory between 50 and 55, showing neither overbought nor oversold conditions.

Stifel Nicolaus recently raised its price target to $508. However, HSBC and UBS Group maintain sell ratings, warning that Tesla’s high valuation leaves little margin for error. Bears point to weakening demand in Europe and China, where EV registrations have dropped this year.

Mizuho Securities lowered its target to $475 from nearly $500. The firm cited reduced EV subsidies in the U.S. and China as potential headwinds. Fading tax credits could hurt Tesla’s cost advantage and slow delivery growth.

The $390-$410 range remains critical for bulls heading into year-end. A push toward $460 could build momentum for a test of last year’s high near $490. Investors are watching for updates on FSD regulatory approvals and the Cybercab initiative.

As of November 27, Tesla trades at $426.60 with the Austin robotaxi fleet expected to reach approximately 60 vehicles in December.

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