Tesla (NASDAQ:TSLA) has been trading like a penny stock so far this year. The most recent drama was due to a public feud between CEO Elon Musk and President Donald Trump. It wiped out about $150 billion of market value last week, but Musk’s apology post on X early Wednesday boosted a relief rally.
Bulls believe the June 22 “tentative” robotaxi launch in Austin will be the moment Tesla pivots from carmaker to autonomous-mobility platform. In turn, this could lead the stock higher. Let’s take a look at where TSLA stock could go.
Tesla’s core auto business is trending “meaningfully weaker,” according to Wells Fargo. And you don’t really need Wells Fargo to tell you that, since the company itself is trying to mask this problem by shifting to discussions about robotaxis and Optimus robots, both of which are likely close to a decade or more away from profitability.
The up-and-coming businesses that Tesla has tried to move the conversation towards could also take a hit after the Musk-Trump spat. Both of these businesses are going to need many approvals from the government to be truly successful. The current administration may not be as enthusiastic as they were just a few weeks ago in letting those through.
Elon Musk’s mea culpa removed one short-term headline risk, but it did nothing to fix sliding deliveries or margin compression. With the average Wall Street price target at $286 and the shares still above $326, the risk-reward skew remains unfavorable for most investors.
TSLA stock could still soar in the short term, leading up to the robotaxi launch, but I’d be very careful with long-term investments until Musk can prove he’s turning around the core business.
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