Tesla (NASDAQ: TSLA) shares jumped sharply on Monday, climbing nearly 5% to around $454.60, after several Wall Street analysts reaffirmed bullish targets and praised the company’s rapid progress in artificial intelligence, robotics, and energy solutions.

The stock is now testing key resistance levels last seen in early September, extending its year-to-date gains to over 16%.

The latest rally follows a string of optimistic updates from major institutions, as investors digest both the company’s expanding product roadmap and the high-stakes debate surrounding CEO Elon Musk’s proposed $1 trillion compensation package.

Wall Street Turns Upbeat on Tesla’s Growth Story

Cantor Fitzgerald became the latest firm to raise its price target on Tesla, increasing it from $355 to $510 per share while maintaining an “Overweight” rating. The firm said it sees Tesla as “the most complete AI-energy company in the world,” with product pipelines that go far beyond electric vehicles.

In a note to clients, Cantor analyst Andres Sheppard said upcoming milestones – such as the production of the Cybercab autonomous vehicle, the Semi truck, and the Optimus humanoid robot – represent the foundation for Tesla’s next major growth phase. Mass production of these units is expected to begin in fiscal 2026, with early Optimus output possibly starting next year.

Cantor also forecast a ramp-up in capital spending, projecting $9.2 billion for FY2025 and $12 billion for FY2026, as Tesla invests heavily in AI infrastructure, robotics, and renewable energy systems. The firm said these investments could “cement Tesla’s dominance as a vertically integrated energy and technology platform.”

Morgan Stanley: Tesla Has “Solved” Autonomy

Meanwhile, Morgan Stanley analyst Adam Jonas doubled down on his long-term bullish stance, calling Tesla’s progress in full self-driving technology a “historic turning point.” Jonas compared the company’s advancements to the industrial revolution’s impact, suggesting that Tesla’s autonomous fleet will fundamentally reshape transportation and data collection.

Jonas emphasized that Tesla’s Full Self-Driving (FSD) system – already active in 12% of the global fleet – could generate over $1.2 billion in annual revenue as adoption rises, with even greater profit potential as software margins scale. He described Tesla’s vast network of connected cars as an “expanding distributed intelligence cloud,” one that transforms each vehicle into a node within a global AI network.

The analyst also highlighted Musk’s plan to begin operating vehicles without safety drivers in Austin within months, saying it signals “a level of readiness that could redefine the competitive timeline for robotaxis.”

Musk’s $1 Trillion Pay Package Sparks Shareholder Tension

While analysts cheer the company’s innovation, Tesla’s board is fighting to secure shareholder approval for Musk’s colossal $1 trillion pay package – a plan tied to ambitious performance targets through 2035.

In a letter to investors, Tesla chair Robyn Denholm warned that rejecting the proposal could risk losing Musk’s leadership, calling him “the driving force behind Tesla’s transformation into a multi-sector technology powerhouse.” The package includes 12 tranches of stock options linked to milestones such as shipping one million Optimus robots and achieving an $8.5 trillion market capitalization.

With Tesla’s Annual Meeting fast approaching on November 6, Board Chair, Robyn Denholm, sent a letter to shareholders on the critical nature of this vote.

The fundamental question for shareholders at this year’s Annual Meeting is simple:

Do you want to retain Elon as Tesla’s…

— Tesla (@Tesla) October 27, 2025

The plan, however, has sparked criticism from proxy advisers ISS and Glass Lewis, who argue it’s overly dilutive to existing shareholders. Musk pushed back sharply, labeling them “corporate terrorists” and stressing that his focus is on maintaining influence over Tesla’s AI direction rather than personal wealth.

Denholm defended the proposal in interviews, saying Musk’s voting power ensures the company “cannot be derailed by those who don’t understand its AI mission.”

Tesla’s Technical Picture Strengthens

From a technical standpoint, Tesla’s chart shows renewed momentum after consolidating between $420 and $450 over recent weeks. Monday’s breakout above $451.68 – the previous short-term resistance – suggests bulls are regaining control. The next major resistance sits around $470.75, the upper boundary of a long-term base extending back to December 2024.

Momentum indicators also point to growing strength. The Relative Strength Index (RSI) currently sits near 59, trending upward from neutral territory, indicating healthy buying pressure without signs of overextension. The Moving Average Convergence Divergence (MACD) line has just crossed above its signal line, historically a bullish confirmation when supported by rising volume.

Traders are watching whether Tesla can sustain its move above $455, which could set up a run toward the $480–$500 range if broader market sentiment remains positive. On the downside, immediate support lies at the 21-day moving average near $430, followed by a more robust floor around $400.

The Bigger Picture: Tesla’s AI Push and Investor Crossroads

Beyond the short-term technicals, Tesla’s long-term vision continues to hinge on artificial intelligence, robotics, and scalable energy infrastructure. The Optimus humanoid robot program, expected to enter early production next year, has become a cornerstone of Musk’s argument that Tesla is “not just a car company, but the future of intelligent automation.”

For investors, the upcoming shareholder meeting – where Musk’s pay package will be voted on – may determine not just executive compensation, but Tesla’s leadership stability and direction in the age of AI-driven transportation.

“While there may be nothing wrong with being just another automaker, our board believes Tesla can be much more,” Denholm wrote in her letter to shareholders. “And Elon is the person to lead it there.”

With the stock approaching critical resistance levels and analysts turning increasingly bullish, Tesla is once again at the center of one of Wall Street’s most defining debates: whether its valuation reflects hype or the early stages of a global transformation in mobility, energy, and automation.