Electric vehicle giant Tesla (TSLA) looks to branch out, and with its CEO now receiving a monster new pay package, it is clear that Tesla has a lot going on right now. Ashok Elluswamy, Tesla’s vice-president of AI software, just attempted to pull the team together with an all-hands meeting that spells out what an utter challenge 2026 will be. The news did not hit well with shareholders, who sent Tesla shares down nearly 7% in Thursday afternoon’s trading.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
With Elon Musk‘s new pay package focused on success in both Robotaxi and Optimus robot operations, that will put a lot of weight on those who work in artificial intelligence (AI) within Tesla. And that was what brought Elluswamy out to make clear that 2026 would be a major challenge for the staff. Some believed that the meeting was supposed to serve as a “rallying cry” for the staff, though just how well that will work remains to be seen.
With Robotaxi service set to arrive in at least eight metropolitan areas before the end of this year, and production of the Optimus robot set to start before 2026’s end, it is clear Tesla’s ambitions are huge. Are they achievable? Again, only time will answer that question. It is worth noting that the Autopilot team is one of Tesla’s highest-priority items, works longer hours than average already, and has “…weekly meetings with Musk.”
Now Hiring
Tesla is also stepping up its production capabilities, with a new $200 million factory going up near Houston, Texas. The factory is known as a “Megafactory,” as opposed to the “Gigafactories” that have already gone up. Hiring for the facility has already begun, and it looks to make 1,500 new jobs by 2028.
The factory is set to produce Megapack batteries, which are used for energy storage on the larger electrical grid. This is the third Megafactory that Tesla has established, with the previous two located in Shanghai and California.
Is Tesla a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 10 Holds, and 10 Sells assigned in the past three months, as indicated by the graphic below. After a 38.38% rally in its share price over the past year, the average TSLA price target of $382.54 per share implies 4.6% downside risk.
