Cantor Fitzgerald upgraded Tesla (NASDAQ:TSLA) from “Neutral” to “Overweight” in a research note on Wednesday, highlighting an attractive entry point after a sharp sell-off and several upcoming catalysts that could drive future growth.

“With Tesla’s shares down roughly 45% year-to-date, we upgrade the stock to Overweight (from Neutral) ahead of significant upcoming catalysts,” Cantor analysts wrote.

Key drivers of Tesla’s growth include the launch of its Robotaxi segment in June 2025, expansion of its Full Self-Driving (FSD) system in China and Europe, the introduction of a more affordable vehicle, and the rollout of the Optimus Bots and Semi Truck.

Although Tesla anticipates its automotive business will “return to growth” in 2025, Cantor noted that this may be partially offset by tariffs and the potential removal of electric vehicle tax credits, factors that “could significantly impact the industry.”

Cantor remains optimistic about Tesla’s autonomous driving ambitions, citing its substantial data advantage.

“Waymo vehicles reported more than 25 million cumulative autonomous miles driven on public roads as of December 2024. Tesla, by comparison, reported over 3 billion cumulative autonomous miles (under supervised FSD) as of January 2025,” the analysts noted.

Cantor also highlighted potential regulatory advantages, suggesting that if the Trump administration introduces a federal framework for autonomous vehicles, Tesla could become a primary beneficiary.

Although Tesla reported fiscal year 2024 revenue of $97.7 billion, slightly below expectations, Cantor sees long-term growth potential from FSD, Robotaxi, energy storage and deployment, as well as Optimus Bots, as central to the company’s investment thesis.