There has been no dearth of Tesla (TSLA) stock skeptics ever since its listing. However, Tesla has continued to create value that’s backed by the innovation edge. Even with intense competition and trade tensions being growth headwinds, TSLA stock has trended higher by 18% in the last 52 weeks.
This rally has been backed by improvement in market share in the United States, the outlook for robotaxi, and the steps taken to navigate the competitive headwinds.
A good example is the recent launch of the lower-priced U.S. Cybertruck at $59,990. At the same time, the price of Cyberbeast, Tesla’s most expensive Cybertruck pickup truck model, has been reduced to $99,990 from $114,990. This can potentially support delivery growth acceleration in the coming quarters.
Of course, this is not the only reason to be positive on Tesla. There are other catalysts that can translate into value creation.
About Tesla Stock
Tesla is a designer, developer, and manufacturer of electric vehicles. Further, the company is in the business of energy generation and storage systems. Tesla has a strong presence in the United States, China, and multiple other markets globally.
As of FY25, Model 3/Y are the key revenue drivers with production and deliveries of 1,600,767 and 1,585,279, respectively. For the same period, Tesla reported revenue of $94.8 billion, which was lower by 3% on a year-on-year (YoY) basis. Further, the company’s adjusted EBITDA was $14.6 billion, which implied an adjusted EBITDA margin of 15.4%.
Even with a relatively muted financial performance, TSLA stock has trended higher by 17% in the last six months. As Tesla transitions itself “from a hardware-centric business to a physical AI company,” the stock is witnessing re-rating.
Growth Catalysts for Tesla
Since Tesla is driven by innovation and some big investments, it’s important to analyze the financial flexibility. As of Q4 2025, the company reported cash and equivalents of $44.1 billion. Further, for FY25, the company’s operating and free cash flows were $14.7 billion and $6.2 billion, respectively. Therefore, financial flexibility is robust for aggressive investments.
The second point to note is that Tesla has a strong pipeline of new products. This includes the Tesla Semi, Roadster, and Robotaxi. For FY25, Model 3 and Y reported total deliveries of 1,583,359. All other models reported delivery of just 57,393. However, if analyst estimates are to be believed, Model 3 and Y deliveries are likely to increase to 2,327,902. For the same period, all other model deliveries are likely to increase to 691,999. Clearly, the new models are expected to have a significant impact on growth and value creation.
Last year, S&P Global projected that Tesla’s robotaxi is likely to drive 45% of automotive sales by 2030. This would imply Cybercab revenue swelling from $1 billion in 2026 to $75 billion by the end of the decade. Therefore, Tesla is positioned to create value through sustained growth that’s driven by the adoption of the latest technologies.
What Analysts Say About TSLA Stock
Given the ratings of 42 analysts, TSLA stock is a consensus “Hold.” While 14 analysts assign a “Strong Buy” rating to TSLA, two analysts opine that the stock is a “Moderate Buy.” Further, 17 analysts believe that the stock is a “Hold.” Finally, on the bearish side, nine analysts have a “Strong Sell” rating.
Based on these ratings, analysts have a mean price target of $406.94 currently, which would imply a marginal upside potential of 2%. However, the most bullish price target of $600 suggests that TSLA stock could rise as much as 51% from here.
It’s worth noting that analysts expect Tesla to deliver earnings growth of 33% and 30.3% for FY26 and FY27, respectively. With steady growth expectations, the innovation-backed company looks attractive.
In terms of risks, TSLA stock has a 60-month beta of 1.86. Volatility can be meaningful in a global scenario that’s characterized by trade tensions and heightened geopolitical concerns.
On the date of publication, Faisal Humayun Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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