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Analysts at Wedbush Securities and Deepwater Asset Management said Tesla remains well-positioned for long-term growth in autonomy, robotics, and energy, even as investors weigh short-term delivery uncertainty and margin pressure following its third-quarter (Q3) results.
Musk’s Leadership Seen As Critical Amid AI Transition
Wedbush maintained an ‘Outperform’ rating and a $600 price target, citing what it called a “good quarter while laying the autonomous path” for Tesla. Analyst Daniel Ives said the company’s growing focus on artificial intelligence, energy storage, and robotics marks a “golden AI chapter” that will define Tesla’s next growth phase.
Wedbush also noted that Tesla’s Nov. 6 shareholder vote on CEO Elon Musk’s pay package will be a key moment for the company. The firm said it believes the proposal will be approved “by a wide margin despite some opposition,” describing the package as “incremental to keeping Musk as a wartime CEO” as Tesla enters a critical inflection point for its AI-driven businesses.
Ives said Tesla’s roadmap, including its AI5 chip, Cybercab robotaxi, and Optimus humanoid robot, underpins its leadership in real-world AI applications. Wedbush expects 2026 to be a defining year as these initiatives move toward scaled production.
“We continue to believe Tesla could reach a $2 trillion market cap in early 2026 in a bull case scenario and $3 trillion by the end of 2026 as the golden AI chapter takes hold” the firm said.
Long-Term Story Intact, Cash Gives Flexibility
Gene Munster, Managing Partner at Deepwater Asset Management, said the quarter was “largely uneventful” but reaffirmed Tesla’s strong long-term positioning in AI and robotics.
He said Tesla’s decision to move cautiously in Austin was the right approach given the risks around autonomous vehicle safety. Munster added that Tesla’s $41 billion cash position provides ample funding for key projects such as FSD, Robotaxi, and Optimus, even if commercialization takes longer than investors expect.
Munster said margins improved slightly from earlier this year and should remain steady through 2026. He expects deliveries to rise modestly next year but emphasized that Tesla’s focus on scaling autonomy and robotics is a bigger driver of long-term value.
“Tesla is the best-positioned company for AI in the real world, has large markets to go after, and plenty of cash to invest to get there,” Munster said.
On Stocktwits, retail sentiment for Tesla was ‘extremely bearish’ amid ‘high’ message volume.
Stocktwits Users Feel Bullish Tesla Calls Are Overhyped
One user said they expected Ives’s bullish stance to be more about attention than substance, calling his upgrade “desperate and flamboyant.”
Another user criticized Wedbush’s $600 target, arguing that paying such a premium for a company earning just $0.50 per share was unrealistic, adding that analysts like Ives could face backlash if Tesla’s lofty ambitions collapse under competitive pressure.
Tesla’s stock has risen about 9% so far in 2025. It currently trades at a whopping 224.7x forward price-to-earnings (P/E) ratio, versus General Motors’ 6.5x and Ford Motor Co.’s 9x multiples, per Koyfin data.
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