At a time when Tesla (NASDAQ: TSLA) is facing massive headwinds, including declining sales and backlash against CEO Elon Musk, an investment strategist has stressed that the current situation is temporary and that the company has enormous growth potential, likely to be realized in 2026.
According to Shay Boloor, 2026 “will look nothing like the one being debated today,” as he sees the current Tesla fluctuation as an inflection point rather than a crisis, he said in an X post on March 15.
To this end, Boloor argued that the market is misjudging Tesla by viewing it solely as an electric vehicle (EV) manufacturer. Instead, he highlighted the company’s evolution into an artificial intelligence (AI)-driven technology powerhouse, with autonomy, robotics, and software as its future pillars.
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“The market’s bearishness is focused on the wrong things. Tesla’s valuation won’t be driven by car sales in five years- it will be about AI, autonomy, robotics, and software. The company’s biggest value unlocks are happening now, yet the stock is trading as if Tesla is a struggling automaker instead of the leader in AI-driven mobility.<…> The Tesla we’ll be talking about in 2026 will look nothing like the one being debated today,” he said.
Tesla’s cornerstone shift
He stated that Tesla’s Full Self-Driving (FSD) system, set to launch unsupervised in Austin this summer, is a cornerstone of this shift. This milestone could pave the way for licensing FSD to other industries, creating a high-margin revenue stream.
Boloor added that the 2025 debut of the Cybercab network, an AI-powered ride-hailing service, is expected to further prove Tesla’s autonomous capabilities.
Beyond autonomy, the strategist pointed to Tesla’s Optimus robotics initiative as a game-changer, with potential applications spanning manufacturing, logistics, and healthcare.
He believes Optimus could eventually rival Tesla’s EV business in revenue. Meanwhile, the upcoming sub-$35,000 Model 2, slated for release before summer, aims to boost demand and reinforce Tesla’s dominance in the EV market.
Wall Street’s take on Tesla stock
Generally, Tesla continues to battle massive headwinds with growing competition and backlash against Musk, particularly in government circles. Indeed, Tesla faces boycotts due to Musk’s role in government affairs, with most of Wall Street turning bearish on the stock.
For instance, JPMorgan slashed its price target from $135 to $120, maintaining an ‘Underweight’ rating driven by weaker deliveries, declining demand, and growing consumer backlash tied to Musk’s political affiliations.
As reported by Finbold, the banking giant now expects Tesla’s Q1 2025 deliveries to hit 355,000 units, an 8% year-over-year drop and a 28% decline from the previous quarter, falling 15% below Bloomberg’s consensus estimate.
Other firms echo this bearish sentiment: Redburn-Atlantic reaffirmed a ‘Sell’ rating with a $160 target, UBS cut its target to $225 while lowering Q1 delivery estimates, and Goldman Sachs trimmed its target to $320, citing sluggish sales across major markets.
Despite the downgrades, some analysts remain bullish. Morgan Stanley’s Adam Jonas sees Tesla evolving into a diversified tech company, maintaining an ‘Overweight’ rating and a $430 price target, with a bullish case for $800.
Wedbush’s Dan Ives called this a “gut check moment” for investors, reiterating an ‘Outperform’ rating and a Street-high $550 target.
TSLA stock price analysis
Regarding the stock price movement, TSLA continues to trade below the $250 resistance, although it has made a minor recovery following the recent market-wide selloff.
At the close of the last trading session, Tesla was valued at $249.98, up over 3% for the day. Year-to-date, the stock remains in the red, plunging over 34%.
Overall, Tesla needs to prioritize investor confidence and deliver on its technology promises to navigate current headwinds. While challenges persist, its future hinges on executing AI, autonomy, and robotics advancements to justify its valuation and regain market trust.
Featured image via Shutterstock
