Tesla Plans Major Capital Increase Amid Declining Deliveries
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 03 2026
0mins
Should l Buy TSLA?
Source: Benzinga
Tesla's stock fell 3.28% as it hit a 20-day low, reflecting broader market weakness with the Nasdaq-100 down 2.02% and S&P 500 down 1.28%.
The company plans to more than double its capital spending to over $20 billion by 2026, focusing on autonomous driving and humanoid robots, while ceasing production of the Model X and Model S. This strategic pivot comes amid a reported 16% decline in vehicle deliveries for Q4 2025, raising concerns about its core business performance and market competitiveness.
Despite these challenges, Tesla's significant cash reserves of over $44 billion position it well for future investments. The shift towards emerging technologies indicates a long-term vision, but the immediate impact of declining deliveries could weigh on investor sentiment.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TSLA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TSLA is 401.93 USD with a low forecast of 25.28 USD and a high forecast of 600.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 397.210
Low
25.28
Averages
401.93
High
600.00
Current: 397.210
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Musk Merges SpaceX with xAI, Wealth Soars
- Merger Valuation Surge: Musk's merger of SpaceX with xAI creates a new entity valued at $1.25 trillion, boosting his net worth to approximately $845 billion, reflecting his ambitions in aerospace and AI sectors.
- Wealth Shift: Post-merger, Musk's ownership in the new entity is estimated at 43%, valued at over $530 billion, indicating a shift in his wealth focus from Tesla to SpaceX, which now constitutes nearly two-thirds of his wealth.
- Market Potential: The merger is seen as a strategic move to access larger capital markets, particularly as xAI's AI model development requires significant funding, potentially opening up greater business opportunities for Musk.
- Future Challenges: While Musk aims to become the world's first trillionaire, SpaceX needs to reach a valuation of approximately $1.6 trillion, facing regulatory scrutiny and ongoing investigations into xAI, which could impact his financial strategy.
See More
Tesla Launches Limited-Time FSD Transfer Program
- FSD Transfer Program Overview: Tesla has launched a limited-time FSD transfer program allowing customers to order a new vehicle and transfer the Full Self-Driving feature from their existing vehicle by March 31, 2026, aimed at enhancing customer experience and boosting new vehicle sales.
- Eligibility Requirements: Customers must be the legal owners of the current FSD vehicle, with both vehicles under the same Tesla account, ensuring a smooth transfer process that enhances customer loyalty to the Tesla brand.
- Transfer Conditions: Vehicles eligible for transfer must not be under lease, used for commercial purposes, or have unresolved financial issues, ensuring compliance and safety during the transfer process while minimizing potential legal risks.
- Policy Update Context: This program follows Tesla's announcement that the free FSD transfer service will end in March, demonstrating the company's flexibility in adjusting policies to meet market demands and customer feedback.
See More
Elon Musk Returns as Major Republican Donor Ahead of 2026 Elections
- Significant Donations: Elon Musk has re-emerged as a major Republican donor ahead of the 2026 midterm elections, contributing at least $20 million to super PACs aligned with House and Senate GOP leadership, demonstrating his strong support for the party.
- Revived Trump Support: As the largest donor of the 2024 election cycle, Musk spent approximately $250 million supporting Trump and other Republicans, and recent donations suggest a stabilization of his relationship with Trump, which could impact the political landscape of upcoming elections.
- Engagement in Voting Debate: Musk recently entered the U.S. voting debate, warning that democracy is at risk if Congress does not enforce stricter proof-of-citizenship rules, a stance that may further enhance his influence within the Republican Party.
- Increased Political Complexity: While Musk's financial contributions are crucial for the GOP, his status as a politically polarizing figure may create a complicated political situation for the party, potentially affecting their election strategies and public image.
See More
Tesla Adjusts FSD Trade-In Valuation Policy
- FSD Impact on Trade Valuation: Tesla has announced that it will consider whether vehicles are running the FSD service to estimate trade-in values for all Model S, X, and Cybertruck vehicles, particularly those with the Luxe package, indicating the company's emphasis on the value of FSD.
- Updated FSD Transfer Terms: The automaker has updated its FSD transfer terms, stating that FSD software will impact trade-in values for Model S and X vehicles from the 2026 model year, reflecting efforts to enhance customer experience and value perception.
- Production Line Shift: CEO Elon Musk revealed that production of Model S and X will end by the quarter's close, with the Fremont facility shifting focus to Optimus production, indicating a strategic pivot that could affect future product lines and market positioning.
- Positive Market Reaction: Tesla's stock surged 3.50% to $411.11 at market close on Friday, further gaining 0.66% in after-hours trading, reflecting investor optimism regarding the company's new policies and potentially boosting market confidence.
See More
SpaceX Shifts Focus to Moon City Construction
- Moon City Priority: Musk announced that SpaceX will prioritize the construction of a Moon city, expected to be completed in less than 10 years, while a Mars city would take over 20 years, indicating a strategic shift in the company's space exploration focus.
- Mars City Plans: Despite the Moon city being the current focus, Musk plans to start building a Mars city in 5 to 7 years, demonstrating SpaceX's long-term commitment to multi-planetary civilization.
- Enhanced Transport Capacity: SpaceX aims to launch over 10 rockets daily to maximize transfer windows that open every 26 months, with several thousand Starships anticipated to transport crew and equipment to Mars, enhancing its presence in space.
- AI Technology Integration: SpaceX's acquisition of Musk's AI startup xAI aims to accelerate the development of “space-based artificial intelligence” to meet the electricity demands of AI applications, showcasing the company's forward-thinking approach to technological innovation.
See More
Japan's LDP Wins Election, Prime Minister Returns
- Election Outcome: Japan's ruling Liberal Democratic Party (LDP) secured a supermajority in the recent elections, allowing Prime Minister Sanae Takaichi to return to power, which indicates strong voter support for her administration.
- Economic Policy Initiatives: Takaichi's agenda includes increasing defense spending and suspending certain food-related taxes, which is expected to stimulate economic growth and enhance consumer confidence, positively impacting Japan's economy.
- Market Reaction: Following the election results, Japanese stocks reached a record high, with the yen strengthening to 156.88 per dollar, reflecting renewed investor confidence in the government's future policies and economic direction.
- International Market Trends: U.S. markets also showed strong performance post-election, with major index futures rising, indicating global investor interest in tech stocks, particularly in the AI sector, further contributing to the overall market recovery.
See More
Musk Merges SpaceX with xAI, Wealth Soars
- Merger Valuation Surge: Musk's merger of SpaceX with xAI creates a new entity valued at $1.25 trillion, boosting his net worth to approximately $845 billion, reflecting his ambitions in aerospace and AI sectors.
- Wealth Shift: Post-merger, Musk's ownership in the new entity is estimated at 43%, valued at over $530 billion, indicating a shift in his wealth focus from Tesla to SpaceX, which now constitutes nearly two-thirds of his wealth.
- Market Potential: The merger is seen as a strategic move to access larger capital markets, particularly as xAI's AI model development requires significant funding, potentially opening up greater business opportunities for Musk.
- Future Challenges: While Musk aims to become the world's first trillionaire, SpaceX needs to reach a valuation of approximately $1.6 trillion, facing regulatory scrutiny and ongoing investigations into xAI, which could impact his financial strategy.
See More
Tesla Launches Limited-Time FSD Transfer Program
- FSD Transfer Program Overview: Tesla has launched a limited-time FSD transfer program allowing customers to order a new vehicle and transfer the Full Self-Driving feature from their existing vehicle by March 31, 2026, aimed at enhancing customer experience and boosting new vehicle sales.
- Eligibility Requirements: Customers must be the legal owners of the current FSD vehicle, with both vehicles under the same Tesla account, ensuring a smooth transfer process that enhances customer loyalty to the Tesla brand.
- Transfer Conditions: Vehicles eligible for transfer must not be under lease, used for commercial purposes, or have unresolved financial issues, ensuring compliance and safety during the transfer process while minimizing potential legal risks.
- Policy Update Context: This program follows Tesla's announcement that the free FSD transfer service will end in March, demonstrating the company's flexibility in adjusting policies to meet market demands and customer feedback.
See More
Elon Musk Returns as Major Republican Donor Ahead of 2026 Elections
- Significant Donations: Elon Musk has re-emerged as a major Republican donor ahead of the 2026 midterm elections, contributing at least $20 million to super PACs aligned with House and Senate GOP leadership, demonstrating his strong support for the party.
- Revived Trump Support: As the largest donor of the 2024 election cycle, Musk spent approximately $250 million supporting Trump and other Republicans, and recent donations suggest a stabilization of his relationship with Trump, which could impact the political landscape of upcoming elections.
- Engagement in Voting Debate: Musk recently entered the U.S. voting debate, warning that democracy is at risk if Congress does not enforce stricter proof-of-citizenship rules, a stance that may further enhance his influence within the Republican Party.
- Increased Political Complexity: While Musk's financial contributions are crucial for the GOP, his status as a politically polarizing figure may create a complicated political situation for the party, potentially affecting their election strategies and public image.
See More
Tesla Adjusts FSD Trade-In Valuation Policy
- FSD Impact on Trade Valuation: Tesla has announced that it will consider whether vehicles are running the FSD service to estimate trade-in values for all Model S, X, and Cybertruck vehicles, particularly those with the Luxe package, indicating the company's emphasis on the value of FSD.
- Updated FSD Transfer Terms: The automaker has updated its FSD transfer terms, stating that FSD software will impact trade-in values for Model S and X vehicles from the 2026 model year, reflecting efforts to enhance customer experience and value perception.
- Production Line Shift: CEO Elon Musk revealed that production of Model S and X will end by the quarter's close, with the Fremont facility shifting focus to Optimus production, indicating a strategic pivot that could affect future product lines and market positioning.
- Positive Market Reaction: Tesla's stock surged 3.50% to $411.11 at market close on Friday, further gaining 0.66% in after-hours trading, reflecting investor optimism regarding the company's new policies and potentially boosting market confidence.
See More
SpaceX Shifts Focus to Moon City Construction
- Moon City Priority: Musk announced that SpaceX will prioritize the construction of a Moon city, expected to be completed in less than 10 years, while a Mars city would take over 20 years, indicating a strategic shift in the company's space exploration focus.
- Mars City Plans: Despite the Moon city being the current focus, Musk plans to start building a Mars city in 5 to 7 years, demonstrating SpaceX's long-term commitment to multi-planetary civilization.
- Enhanced Transport Capacity: SpaceX aims to launch over 10 rockets daily to maximize transfer windows that open every 26 months, with several thousand Starships anticipated to transport crew and equipment to Mars, enhancing its presence in space.
- AI Technology Integration: SpaceX's acquisition of Musk's AI startup xAI aims to accelerate the development of “space-based artificial intelligence” to meet the electricity demands of AI applications, showcasing the company's forward-thinking approach to technological innovation.
See More
Japan's LDP Wins Election, Prime Minister Returns
- Election Outcome: Japan's ruling Liberal Democratic Party (LDP) secured a supermajority in the recent elections, allowing Prime Minister Sanae Takaichi to return to power, which indicates strong voter support for her administration.
- Economic Policy Initiatives: Takaichi's agenda includes increasing defense spending and suspending certain food-related taxes, which is expected to stimulate economic growth and enhance consumer confidence, positively impacting Japan's economy.
- Market Reaction: Following the election results, Japanese stocks reached a record high, with the yen strengthening to 156.88 per dollar, reflecting renewed investor confidence in the government's future policies and economic direction.
- International Market Trends: U.S. markets also showed strong performance post-election, with major index futures rising, indicating global investor interest in tech stocks, particularly in the AI sector, further contributing to the overall market recovery.
See More
