Wall Street is wary of Tesla due to intensifying EV competition from players like BYD, pressure on automotive margins, and a valuation that prices in growth from autonomous driving, robotics and energy storage. Tesla's automotive gross margin, excluding regulatory credits, fell from 26.7% in 2022 to 16.3% in the second quarter of 2026. The author argues the energy business is a clear growth area, with energy generation and storage revenue up 13% year over year to $3.14 billion in Q2 and total energy revenue of $12.77 billion in 2025, up 27% from 2024. The author notes Optimus is still early-stage and robotaxi success is not guaranteed, but says Tesla's battery, motor and software experience gives it a head start. Citing Morningstar's $450 valuation against a share price near $375, the author concludes that Tesla's potential extends well beyond car sales.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related tickers and likely impact
TSLA
▼ Likely negativeTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/13/2026 | 375.23 |
| Change that session | -0.74% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Tesla-SpaceX merger is 'not so easy': Analyst
Speculation about a possible merger between SpaceX (SPCX) and Tesla (TSLA) has grown on Wall Street in recent weeks. RBC Capital Markets analyst Tom Narayan says it would not be simple: SpaceX would have to acquire Tesla, likely in an all-stock deal, and would need to pay a strong premium. He sets a $480 price target for Tesla, while the shares trade near $367. The longer-term focus may be Terafab, Elon Musk's chip initiative aimed at cutting production costs by up to 90% and bypassing Nvidia and TSMC. Musk currently controls 85% of SpaceX's voting rights and 20% of Tesla's.
- Mag 7 Pull Dow Back to Breakeven Line
- Wall Street Projects A Down Quarter For Tesla Earnings; Stock Rebounds
- Tesla Rises 4% as DeSantis Vows to Make Flying Roadster Legal in Florida; Rivian and Lucid Slip
Tesla shares rose 4% to $367.59 in afternoon trading after Florida Governor Ron DeSantis pledged to make the company's flying Roadster legal in his state, saying on X that the state would ensure it is legal. The pledge followed Tesla's unveiling of the long-delayed Roadster last week, where a version fitted with air tanks and thrusters launched from a ramp, flew briefly and landed on its wheels. Rivian fell 0.9% to $12.31 and Lucid slipped 1.12% to $3.10, while Tesla's gain also reflected a broad tech rebound, with the QQQ up 2%. The article notes that federal regulators decide whether a vehicle can fly, production is years away, and Tesla has not announced a price for the flying version.
- SpaceX to Continue Sharing 'Ambitious' Updates as Interest Around Potential Tesla Merger Grows, RBC Says
- Tesla–SpaceX merger: What is the Roadster's bigger strategic play?
In the Loop host Ejaaz Ahamadeen argues that the technology behind the “flying” Tesla Roadster shows Elon Musk can combine strengths of Tesla and SpaceX into something new, and that a merger makes sense given synergies such as Tesla battery packs for data centers and humanoid robots that could help SpaceX build and refuel rockets. Rumors suggest an announcement as early as December, with SpaceX acquiring Tesla in an all-stock deal in which Tesla shareholders receive about 0.7 SpaceX shares per Tesla share. Barclays estimates Musk would own about 37% of the combined company with roughly 56% voting power, and the combined valuation would make it the fifth-largest company in the world. The host also notes doubts about mass-market scaling, manufacturing, cost, safety regulation, and the fact that the Roadster is the most delayed product from one of Musk's companies.
Related markets
Latest news
- Is Nvidia Stock Really Trading for Just 8 Times 2030 Earnings?
Nvidia is the market's most valuable company, with a market cap above $5 trillion. It trades at 27 times adjusted trailing earnings, but only about 8 times analysts' estimate for fiscal 2030 earnings, a figure the author stresses is a moving target. Revenue growth accelerated from 56% in Q2 FY 2026 to 106% in Q2 FY 2027, though guidance points to a slight slowdown in the current quarter. The stock trades at 13 times next year's earnings, and the board recently authorized a record $150 billion in share repurchases. The author also acknowledges risks such as slower growth or contracting net margins.
- US Orders Civilian Agencies to Rip DeepSeek Out of Government Systems
The U.S. Department of Homeland Security on Monday ordered civilian federal agencies to remove DeepSeek products and third-party services built on the model from their IT systems, and to stop buying them. The notice warns that using DeepSeek may transfer sensitive data to China and could produce intelligence on U.S. persons and agencies. The Commerce Department, the Navy, and the states of New York, Tennessee and Virginia had already restricted DeepSeek. The FCC votes on October 29 on barring Chinese labs from testing electronics for U.S. use.
- Is Nvidia (NVDA) Stock Priced Right?
Chip stocks fell sharply last week, and Nvidia (NVDA) dropped nearly 2% as investors worried that heavily indebted AI companies would face higher borrowing costs after bond yields jumped for CoreWeave, a cloud company Nvidia backs. CoreWeave shares had fallen more than 15% the day before. Nvidia's own numbers show no sign of that stress: it sold $96.2 billion of chips and systems in the quarter ended July, up 106% from a year earlier, mostly from data center sales. Its net profit margin was 63.66% over the past 12 months, and management expects $108.0 billion in revenue next quarter, assuming no data center sales to China. The key risk is whether customers can keep paying for chips if interest rates stay high, and the planned partnerships to bring over $500 billion of outside capital into AI infrastructure have not yet become definitive agreements.
- Networking Stocks Rally as Tech Rebound Lifts AI Gear Makers: Ciena and Arista Climb 4%, but Cisco Barely Moves
Networking stocks rallied with the tech rebound as suppliers of AI data center gear drew buying: Ciena (CIEN) rose 4% to $347.48 and Arista Networks (ANET) climbed 4% to $183.32, well ahead of the iShares U.S. Technology ETF (IYW) at 1.29% and the Invesco QQQ Trust (QQQ) at 1.31%, while Cisco (CSCO) was practically unchanged at $107.06. Ciena's fiscal Q3 2026 adjusted EPS was $2.11 against a $1.73 consensus, with revenue up 37% year over year to $1.67 billion, and it raised fiscal 2026 revenue guidance to $6.42 billion. Its backlog reached $8.5 billion, but supply remains the limit, and management does not expect the market to return to balance before 2028. Two customers made up 41.7% of Q3 revenue, so Ciena's growth is concentrated. The next test is whether Ciena can hit its fiscal Q4 2026 revenue guidance of $1.75 billion under tight component supply.
- Gartner Predicts “80% of Neoclouds” Out of Business by 2030: Here’s Who Wins
Gartner forecast on October 14 that more than 80% of neoclouds will stop operating independently by 2030, and CoreWeave (CRWV) fell 25% last week. The article argues that hyperscalers funding AI capacity from their own cash flow, led by Amazon and Alphabet, are likely winners as credit tightens for indebted neoclouds. Amazon generated $140 billion of operating cash flow in fiscal 2025, more than covering $132 billion of capex, while CoreWeave's total debt reached $29.8 billion. Since their July 29 closing low, Microsoft, Alphabet and Amazon are up 15.6%, compared with 1.6% for IREN, CoreWeave and Nebius. Hyperscaler earnings in the coming weeks will need to show whether sold-out capacity is turning into results.
- Trump Media Drops 7% While Rumble Climbs 3% Against a Rising Market
Trump Media (DJT) fell 7% to $6.48 while Rumble (RUM) rose 3% to $5.87, and the article attributes the split to company-specific factors rather than the broader market, where SPY was up 0.6%. Trump Media's Q2 revenue was $1.7 million, up 92.5% from a year earlier, but its net loss was $238.1 million, including $190.4 million of non-cash unrealized losses on digital assets and equity securities. It held $1.9 billion in financial holdings, so its share price is sensitive to swings in digital asset prices. Q2 legal expenses reached $25.6 million, and adjusted EBITDA loss widened to $223.5 million from $12.8 million a year earlier. The company is also pursuing an all-stock merger with private fusion developer TAE Technologies, targeted to close in Q4 2026, pending shareholder and regulatory approvals.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.