‘High Gas Prices Could Be a Tailwind,’ Says Stifel about Tesla Stock (TSLA)

Tesla TSLA +1.11% ▲ , the electric vehicle maker led by Elon Musk, could benefit from rising fuel prices, according to top Stifel analyst Stephen Gengaro, who reiterated a Buy rating on the stock with a $508 price target. In a new report, Gengaro said that if the Iran War persists, the resulting spike in gasoline prices could act as a major tailwind for Tesla’s EV sales.

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At the time of writing, the price of the global oil benchmark Brent (CM:BZ) was up 2.77% at $102.99 a barrel, while West Texas Intermediate (WTI) crude (CM:CL) rose 2.97% to $96.28 per barrel.

It is worth noting that Gengaro ranks 247 out of more than 12,000 analysts tracked by TipRanks. He has a success rate of 54%, with an average return per rating of 20.80% over a one-year timeframe.

Gengaro’s Take on Tesla Stock

The analyst said ongoing geopolitical tensions in the Middle East could push gasoline prices higher, which would make electric vehicles more attractive to consumers. As a result, Tesla could see stronger demand even as it faces some near-term pressure.

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Gengaro also pointed to Tesla’s latest results, where the company reported a 20.1% gross margin in Q4 2025, its highest level in two years. This came despite more than $500 million in tariff impact and lower production efficiency, helped by better execution and a favorable mix of vehicle sales.

That said, the analyst expects some near-term headwinds. The end of U.S. EV tax credits could weigh on demand, while Tesla’s shift to offering its Full Self-Driving (FSD) software as a subscription may impact how revenue is recognized.

Even so, Gengaro remains positive on Tesla’s long-term outlook. He said progress in self-driving technology and robotaxis will be key drivers of value over time, as the company continues to invest in these areas.

Is TSLA Stock a Buy?

Tesla’s stock has a consensus Hold rating among 31 Wall Street analysts. That rating is based on 13 Buy, 11 Hold, and seven Sell recommendations issued in the last three months. The average TSLA price target of $399.25 implies 0.93% upside from current levels.

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