Analysts at Wells Fargo are bullish on Tesla (TSLA) stock in the long run, but see another project propelling it to new highs, not its vehicle sales. Indeed, Tesla’s physical AI strategy is increasingly being seen as a multi-layered, multi-year growth driver on Wall Street. On February 13, the firm reiterated TSLA stock as “Underweight,” stating that its data checks show delivery numbers remain weak.
Late last month, Tesla announced it would end production of its long‑running Model S and X to convert the Fremont factory toward manufacturing its Optimus humanoid robots. This comes alongside a 3% YoY revenue decline and 11% drop in automotive revenue, marking Tesla’s first-ever annual decline in sales. The move fuels the sentiment that leading tech giants like Tesla are shifting full-force towards AI.
Previously, analysts were mixed on Tesla (TSLA) stock to open the new year. However, TSLA is down 7.5% YTD. Poor sales and delivery numbers have contributed to the decline, but some analysts have also noted that the shift to an AI focus has also played a part. In the latest earnings call, CEO Elon Musk updated Tesla’s mission to focus on “amazing abundance” and an AI-driven utopia. Furthermore, Musk’s recent focus on combining xAI and SpaceX also signals a shift that has sparked mixed reactions for TSLA stock.
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Entering Tuesday, Tesla stock was expected to edge higher as Grok AI Assistant launched in Europe. The company rolled out the assistant to the UK and European markets through the software update 2026.2.6. This is made available for free to eligible vehicles that run on the AMD Ryzen processors. While the news sounded bullish, TSLA remains down 2.9% at press time.