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Tesla Stock Rebounds as Analysts Highlight AI and Robotics Potential

Despite a steep decline in EV sales and political controversies, analysts project significant long-term growth for Tesla driven by AI advancements and new product initiatives.

Tesla logo is placed on the vehicle at the 41st Thailand International Motor Expo, in Bangkok, Thailand, November 29, 2024. REUTERS/Athit Perawongmetha/File Photo
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Overview

  • Tesla shares rose 2% on Monday after Morgan Stanley reiterated a $430 price target, citing the company's shift toward AI and robotics as key growth drivers.
  • The stock has fallen nearly 28% in 2025, losing over $350 billion in market value, partly due to declining EV sales and CEO Elon Musk's political role under President Trump.
  • Analysts predict Tesla's 2025 vehicle deliveries may decline year-over-year, but view this as an opportunity for investors to capitalize on the company's broader AI ambitions.
  • Upcoming speculative initiatives, such as a lower-priced EV and a driverless taxi service, are highlighted as potential near-term catalysts for growth.
  • Tesla’s Optimus humanoid robot and self-driving technology are seen as transformative, with analysts estimating significant valuation upside if these ventures succeed.