Melius Research initiated coverage of Tesla on October 27, 2025, with a strong endorsement, labeling the stock a "must own" and setting a $520 price target. [2] The firm's confidence stems from what it calls Tesla's pioneering role in artificial intelligence, describing the company's autonomous driving efforts as "the first major manifestation of AI in the physical world." [2] This bullish outlook arrives amid a period of stock volatility and broader market analysis of Tesla's valuation. [1, 3] While the company recently reported record Q3 revenue, it missed profit expectations, leading to some investor concern. [4, 11] The Melius report, however, focuses on the long-term potential of Tesla's AI and robotics ventures, a recurring theme in the company's own narrative. [10, 11] The endorsement also comes as Tesla navigates regulatory scrutiny, including a recent NHTSA inquiry into a feature of its Full Self-Driving system. [5] The new analyst coverage provides a significant counterpoint, emphasizing innovation and future growth prospects over recent earnings performance and regulatory hurdles.