Jefferies analyst Philippe Houchois has maintained a Hold rating on Tesla while raising the price target to $400 from $375. The revision signals a modestly improved valuation outlook for the electric vehicle manufacturer despite the neutral stance on the stock.

Rating and Price Target Adjustment

The decision to retain the Hold rating suggests that Tesla's risk-reward profile remains balanced at the new price level. Houchois increased the target from the previous $375, indicating a shift in the firm's financial model or market expectations.

Analyst Consensus

The updated price target of $400 provides a specific benchmark for investors tracking Tesla's performance. While the rating remains unchanged, the higher target implies potential upside relative to the prior assessment.

Tesla Inc. is decommissioning the production lines for its Model S and Model X vehicles at the Fremont facility to prepare for the manufacturing of the Optimus humanoid robot. The shift in production capacity marks a significant strategic pivot for the electric vehicle manufacturer as it prioritizes robotics.

Optimus Production Begins

Ashok Elluswamy, Tesla's artificial intelligence lead, highlighted the transition on social media, noting the legacy of the outgoing premium vehicles. "Big shoes to fill, but I’m confident Optimus will not disappoint!!" Elluswamy stated in a post on X. The company had previously announced that the first production line for Optimus was successfully installed at the facility.

Tesla CEO Elon Musk has projected that the humanoid robot could eventually require up to 40 production lines due to its complex design. Musk also emphasized the potential healthcare applications of the robot, suggesting it could provide greater access to excellent health needs through artificial intelligence.

Model Y Sales Performance

While the Fremont facility undergoes retooling, Tesla's Model Y SUV continues to perform strongly in international markets. The vehicle reclaimed the title of the best-selling vehicle across all powertrain and fuel options in China in June 2026.

The company recently launched the U.S.-spec Model Y L, priced at $61,990. This three-row variant, previously exclusive to the Chinese market, is also being assessed for a potential launch in Europe.

Tesla shares were down 1.33% to $402.33 during premarket trading on Monday.