Consequently, the best way to think about the recent events is that Tesla is becoming a higher-risk/higher-reward proposition. The company’s plans to aggressively ramp up production are based on the assumption that its unsupervised full self-driving solutions will become a reality. Investors have to monitor EV competitors to see if they can continue to take market share away from Tesla. Optimus and Cybercab falling below expectations would be big blows to Tesla’s bull case. Elon Musk is either the company’s greatest strength or weakness, depending on how you view the billionaire entrepreneur.
Chinese-made EVs have been penetrating Tesla market share in China and other countries, but a 100% U.S. tariff on Chinese EVs is the main reason they haven’t made a dent in the U.S. On the brighter side, Statista projects an annualized 6% growth rate for the EV industry as a whole from now until 2029. Looking ahead to 2026 and beyond, Tesla’s future stock price is expected to be shaped by significant technological advancements, market expansions, and strategic initiatives. Analysts present a diverse range of forecasts, reflecting both optimistic and cautious perspectives on Tesla’s future. Meanwhile, Tesla’s robotaxi initiative, launched in Austin in June, has expanded to California, Nevada, and Arizona. With millions of vehicles already equipped with self-driving hardware, the company is well positioned to scale as regulations evolve.
Stay ahead of the market!
- EV sales also slumped on widely reported backlash to his politics, but now that Musk has left DOGE and is back with Tesla, investors are feeling more optimistic about his leadership.
- Value investors and those who focus on financial growth rates won’t like this stock, especially if they don’t want to wait for upcoming projects to pan out.
- Over the next ten years, the company will have to prove itself once again.
- If these aims aren’t achieved, then the ramp-up in production, notably with Cybercabs, coupled with the pre-commitment to increasing capital spending to fuel growth, could compromise the company in 2026.
And while early operations will be geofenced to areas the company considers to be safest, the program could generate valuable training data and help set the stage for larger-scale commercialization in the future. The first area to watch on the upside is the $532 pivot; a daily close above this level could bring the $600 region into focus. On pullbacks, initial support lies near $407, followed by the $351 simple moving average (SMA) level.
Stocks Mentioned
Another potential reason for TSLA stock depreciation was Musk’s controversial political activities, which could significantly reduce the number of Tesla customers. Tesla’s journey in the stock market has been marked by significant milestones and periods of volatility. Since its initial public offering (IPO) in June 2010, when it debuted at $17 per share, Tesla has seen dramatic price changes driven by key events and developments. This means that analysts believe this stock is likely to outperform the market over the next twelve months. Tesla is now aggressively adjusting its operations on the assumption that it will succeed with robotaxis and achieve its unsupervised FSD goals. The importance of robotaxis and publicly available unsupervised FSD (the two are not the same thing, and the latter is likely to lag the former) can’t be overstated.
He has more than 10 years of writing experience focused on finance and digital marketing. News & World Report, USA Today, InvestorPlace and other publications. Tesla stock may be a good investment if Cybercabs and Optimus rapidly gain market share. Forecasts point to a potential average trajectory for Tesla as new business lines develop. By this stage, Optimus robots could start moving toward mainstream adoption, with Musk outlining significant ambitions for the platform.
How’s Tesla Positioned Now? EVs, Robotaxis & More
They are the key to unlocking value for both investors and Tesla EV owners. Supporters see him as the visionary who can turn big ideas into reality — but the targets tied to his compensation are extremely ambitious. And let’s not forget that Tesla has a track record of delayed timelines and lofty promises that take longer to materialize. Tesla’s focus remains on upcoming launches — the Cybercab, Tesla Semi, and Megapack 3 — all expected in 2026. Its Optimus humanoid robot also remains on track for a production-intent prototype next year.
- Investors have to monitor EV competitors to see if they can continue to take market share away from Tesla.
- Always consider both potential gains and losses before opening a position.
- At the same time, an autonomous ride-hailing network — Tesla’s so-called Cybercabs — may be operating widely in major cities, creating another recurring source of revenue.
- Strong demand for Megapack and Powerwall systems has made this Tesla’s most profitable division.
- Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Share this Comment:
→ Weakness in the US dollar index – or a pullback from the resistance level discussed in yesterday’s DXY analysis. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Recent refreshes of the Model Y and Model 3 did little to stop the bleeding. New business verticals will likely be the only way for Tesla to regain a growth trajectory. Since that time, the EV maker’s stock has trended higher to recover most of those losses, with gains accelerating in recent trading sessions. It’s also worth noting that the 50-day moving average (MA) crossed above the 200-day MA in late July to form a golden cross, a bullish chart signal that predicts higher prices.
However, achieving this target will depend on the company’s ability How to learn how to trade to scale production, sustain profitability, and continue innovating across the electric vehicle and energy sectors. Moreover, leadership decisions remain as influential to market performance as fundamental metrics themselves. It’s no secret that Tesla’s (TSLA 3.46%) valuation isn’t based on it being just another car company, even though it’s the leading player in electric vehicles (EVs).
TSLA is trading at around $436 as of October 2025 and is up 15% year-to-date. The stock fell roughly 50% as tariffs ramped up, but it’s rebounded sharply from 2025 lows. Tesla’s trailing and forward P/E ratios are much higher than any other automaker’s, and their elevated levels show that investors are still counting on significant future earnings growth. During periods of weakness, investors should eye the $225 level, an area on the chart where the shares could attract support near the July 24 gap day’s opening price and last month’s high.
The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.
Zacks’ 7 Strongest Buysto Close Out 2025
Other big bets include AI and planned self-driving taxis dubbed Cybercabs. Three years later, Tesla is once again overvalued because of a dramatic drop in profits amid electric vehicle (EV) competition and consumer boycotts related to Elon Musk’s political activism. Over the next ten years, the company will have to prove itself once again.