Tesla (TSLA) shares are slipping in pre-market trading today, extending their losing streak after a 6.6% drop on Thursday. Following a recent rally driven by optimism around EVs and AI bets, investors are now concerned about Elon Musk’s huge new package and broader market volatility. Tesla’s shares are now down 10% since Musk received his new pay package.
TipRanks Black Friday Sale
- Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
What’s Behind the Recent Decline?
Most recently, TSLA stock went down after Tesla AI chief Ashok Elluswamy told staff in an all-hands meeting that 2026 will be a challenging year, as the company has set ambitious timelines for both Optimus robot production and the expansion of its Robotaxi service. Notably, Musk’s recently approved pay package is tied to the success of these two projects.
Overall, U.S. stocks were also hit by a broader tech sell-off. After a strong AI-driven rally, investors are growing concerned that tech stocks may be overvalued. It seems investors are taking profits after a strong run in AI and tech stocks.
Veteran Tesla Analyst Stays Bullish
Despite some criticism around Musk’s pay package, longtime Tesla bull Wedbush’s Daniel Ives remains positive on Tesla shares, highlighting the company’s AI-driven future as a key focus for investors.
Ives sees the shareholder vote as a sign that investors still support Musk’s “wartime CEO” approach as Tesla expands into AI, robotics, and autonomous technology. The approval also secures Musk’s leadership for years, kicking off what he calls Tesla’s “AI valuation phase.” He also sees the approval of Musk’s compensation plan as a clear signal that Tesla can now fully focus on its AI and self-driving technology plans.
Ives has a Buy rating on TSLA with the highest price target of $600.
What Is the Price Target for Tesla Stock?
According to TipRanks, TSLA stock has received a Hold consensus rating, with 14 Buys, 10 Holds, and 10 Sells assigned in the last three months. The average Tesla stock price target is $382.54, suggesting a potential downside of 5% from the current level.
