Tesla Stock Surges on AI Bet as Analysts Split Over Valuation
Tesla shares rallied 3.3% to $430.41 after UBS boosted its price target despite maintaining a sell rating, highlighting Wall Street's divergent views on the EV maker's AI pivot. The company beat Q4 earnings ($0.50 EPS vs $0.45 expected) while revenue dipped 3.1% YoY to $24.9B.
Elon Musk's $2B investment in xAI and plans for $20B in robotics/AI capex by 2026 signal a strategic shift. Production of legacy Model S/X will cease to free capacity for Optimus humanoid robots - a MOVE Wedbush calls 'the most ambitious industrial automation play since Ford's Model T.'
Analyst targets now range from $300 to $551, with trading volume spiking 29% above average. The stock's 398 P/E reflects what bulls see as justified premium for AI infrastructure, while bears note shrinking auto margins.