Tesla Faces Multiple Challenges and Opportunities Ahead
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 20 2026
0mins
Should l Buy TSLA?
Source: Fool
- Deliveries Miss Expectations: Tesla reported 358,023 deliveries in Q1 2026, falling short of Wall Street's 370,000 estimate, indicating pressure from weak demand and increased market competition, which may lead to further stock price declines.
- Robotaxi Expansion: Tesla plans to extend its robotaxi service to Dallas and Houston in the first half of 2026, covering four markets, although still requiring human safety drivers, this expansion could lay the groundwork for future revenue growth.
- Huge Market Potential: Morgan Stanley analysts estimate the total addressable market for robotaxis in the U.S. at least $1 trillion, with potential annual revenues of $250 billion to $500 billion at a 25% penetration rate, highlighting Tesla's growth potential in the future.
- Valuation and Growth Outlook: Tesla's current P/E ratio stands at 240, considered overvalued, yet Morgan Stanley projects earnings to grow at 27% annually to reach $18.18 per share by 2035, indicating the company has room to grow into its valuation over the next decade.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 372.800
Low
25.28
Averages
401.93
High
600.00
Current: 372.800
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.
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- Competitive Market Position: With the production of the Semi truck, Tesla will be better positioned to meet the increasing demand for electric commercial vehicles, thereby strengthening its competitive stance in the global EV market.
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