A long-time Tesla (TSLA.O) skeptic now recommends the stock, arguing Musk’s AI and robotics portfolio creates undervalued growth potential.
The shift highlights renewed investor focus on Tesla’s autonomous driving and robotics divisions as traditional electric vehicle sales face headwinds from increased competition and slowing delivery growth.
Key Takeaways
- Former Tesla bear now bullish on AI valuation upside
- Stock undervalues Musk’s robotics and autonomy portfolio
- Traditional EV business faces delivery and margin pressures
Market reaction & context
Tesla shares have underperformed the broader market amid concerns about slowing electric vehicle demand and intensifying competition from Chinese manufacturers. The stock has declined approximately 15% over the past six months, while the S&P 500 gained 8% during the same period.
The analyst’s reversal comes as Tesla’s core automotive profit engine shows signs of strain, with recent quarterly results revealing margin compression and delivery shortfalls 2.
Detailed analysis
The bullish thesis centers on Tesla’s positioning in artificial intelligence and robotics, comparing Musk’s empire to historical industrial monopolies. The analyst argues that Tesla’s autonomous driving technology, combined with its robotics initiatives, represents a significant value proposition not reflected in current share prices 1.
Tesla’s Full Self-Driving software and planned robotaxi service could generate substantial recurring revenue streams beyond traditional vehicle sales. The company’s Optimus humanoid robot project adds another potential growth vector in the expanding robotics market.
Outlook & management guidance
Musk has previously warned potential investors about the company’s autonomous driving focus. “If somebody doesn’t believe Tesla is going to solve autonomy, I think they should not be an investor in the company,” Musk said during a quarterly earnings call 7.
The CEO’s comments underscore Tesla’s strategic pivot toward autonomous technology as its primary long-term value driver, despite near-term challenges in traditional vehicle operations.
Investment considerations
Recent analysis suggests investor optimism may be premature given Tesla’s falling delivery numbers and rising competitive pressures in key markets 4. The company faces particular challenges in China, where local manufacturers have gained significant market share in the premium EV segment.
Tesla’s valuation remains elevated compared to traditional automakers, requiring successful execution of its AI and robotics strategy to justify current price levels and support future growth expectations.
Not investment advice. For informational purposes only.
References
1“I refused to invest in Tesla for years – but now’s the time to bet on Elon Musk”. MarketWatch. Retrieved January 15, 2026.
2“Tesla’s profit engine is sputtering. Elon Musk has bet its future on a promise he’s far from delivering”. Reddit. Retrieved January 15, 2026.
3“Betting All My Tesla Stock on Elon Musk”. YouTube. Retrieved January 15, 2026.
4“Should You Get Too Optimistic on Tesla After Musk’s 1B Bet”. Zacks. Retrieved January 15, 2026.
5“Tesla: TSLA Stock Price Quote & News”. Robinhood. Retrieved January 15, 2026.
6“It began with a risk. When Elon Musk committed 10 billion”. Facebook. Retrieved January 15, 2026.
7“Elon Musk Says You Shouldn’t Invest in Tesla Stock Unless”. The Motley Fool. Retrieved January 15, 2026.
8“Hard to bet against Elon”. Reddit. Retrieved January 15, 2026.