Tesla (NASDAQ:TSLA) stock may have bounced back a bit from its post-earnings dip, but the company’s latest Q2 report still leaves plenty to unpack. EV deliveries declined for the second straight quarter, as the automaker grapples with a tarnished brand image and mounting competition. Furthermore, the removal of EV tax incentives is a development CEO Elon Musk specifically described as a rough hit for the company.
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Yet, despite these near-term setbacks, Musk remains firmly focused on Tesla’s long-term vision – one that extends well beyond EVs. His confidence was on full display during the Q2 call, as he doubled down on Tesla’s ambitions in AI, robotics, and autonomous driving.
Musk highlighted the “exquisite design” of Optimus 3 – Tesla’s humanoid robot – and revealed plans to scale production to 100,000 units per month within five years. He also pointed to progress on the robotaxi front, touting the recent launch of a pilot program in Austin as a key milestone in the journey toward full self-driving.
That kind of vision appears to be resonating with some investors, who are looking past the current delivery declines and focusing instead on what lies ahead. One such believer is top investor JR Research, who is among the very top 1% of TipRanks’ stock pros.
“If you have been waiting for an opportunity to get in before Tesla starts scaling up on robotaxis and humanoid robotics, this is one opportunity you shouldn’t forego,” JR notes.
The investor argues that Tesla’s robotaxi initiative is no mere “pipe dream,” citing analyst projections that peg it at 45% of the company’s auto revenues by the end of the decade. Even more striking, Musk has suggested that the company’s humanoid robot business could eventually be worth $30 trillion in annualized revenue.
To be sure, JR acknowledges that there are plenty of unknowns and hurdles ahead, and emphasizes that such projections are not “cast in stone.” Still, the investor believes that Tesla is in the early innings of a potentially massive transformation, and is willing to bet on Musk’s ability to execute.
“I believe we remain in the earlier stages of seeing a revival in TSLA stock as investors allow more time for Musk and his team to validate their early robotaxi ramp-up in more U.S. cities, while telegraphing its ambitions to dominate the humanoid robotics business,” JR concludes, assigning TSLA stock a Buy rating. (To watch JR Research’s track record, click here)
Wall Street, however, isn’t quite ready to share JR’s optimism. With 14 Buy, 14 Hold, and 8 Sell ratings, Tesla currently holds a consensus Hold (i.e., Neutral) rating. Its 12-month average price target of $310.65 suggests shares will stay range-bound for the foreseeable future. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.