Tesla (NASDAQ:TSLA) stock is something of a Rorschach test, reflecting each investor’s own hopes, doubts, and fears about the company and the market.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Are you a nuts-and-bolts, blue chip investor, interested only in the fundamental metrics of established companies that you can see and feel? Or, are you more of a risk taker, ready to buy into startup visions of grandeur?
Both mindsets find fertile ground in Tesla – one reason the stock elicits such a wide range of emotions. And in 2025, the tug-of-war between the two narratives has been unfolding in real time.
For instance, CEO Elon Musk’s falling popularity earlier this year weighed heavily on global EV sales, sending the stock lower in the first half. Yet, the mood has shifted in recent months, as investors refocus on Musk’s ambitions in self-driving, AI, and robotics – areas many believe could be Tesla’s next trillion-dollar growth engine.
That belief is shared by top investor James Foord, who is ready to take the plunge in what he calls a “trillion-dollar startup.”
“Tesla is no longer just an EV company – it’s an AI & robotics startup in disguise,” says the 5-star investor, who is among the top 2% of TipRanks’ stock pros.
Foord isn’t blind to the near-term challenges, from tariff concerns to the loss of the $7,500 consumer tax credit, which have pressured operating margins. But the investor argues that the real story lies in the opportunities highlighted in Tesla’s Q2 2025 earnings.
“The really important news is this: Tesla rolled out robotaxi operations in Austin, posted record profits in its energy division, (and is) targeting a massive rollout of its Optimus 3 over the coming years,” Foord asserts.
In Foord’s view, each of these segments holds billion-dollar potential. Energy remains Tesla’s “most overlooked business,” now delivering record profits. The Cybercab project could redefine ridesharing, taxis, and even personal car ownership. And with plans to produce 1 million Optimus 3 humanoid robots in the next five years, Tesla is reaching for an entirely new frontier. Even if some of these goals fall short, Foord believes the upside justifies the gamble.
“Elon shoots for the moon, and while he often misses, he still lands somewhere no one has been before. Tesla is a wild card, but it’s a bet worth taking,” concludes Foord, who rates TSLA shares a Buy. (To watch James Foord’s track record, click here)
Of course, not everyone shares Foord’s enthusiasm. Wall Street’s view on TSLA remains sharply divided, with 13 Buys, 15 Holds, and 8 Sells, giving the stock a consensus Hold (i.e., Neutral) rating. The 12-month average price target of $305.37 suggests ~7% downside from current levels (See TSLA stock forecast).
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
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.