Tesla (TSLA) has made a notable shift to working on AI efforts and robotics, including releasing its Optimus robot. Investors are optimistic about the potential for AI-trained robots, but there is still some concern about the shift away from vehicles.
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.
Coming into Wednesday trading, Tesla stock had risen about 24% over the past 12 months. Those gains value the company at about $1.8 trillion, including CEO Elon Musk’s vested stock options, and trading for about 206 times estimated 2026 earnings. Tesla’s physical AI strategy is increasingly being seen as a multi-layered, multi-year growth driver on Wall Street, spurring price forecast upticks among analysts.
Looking at current price predictions, analysts are mixed on Tesla’s future in 2026. The average forecast for TSLA in 2026 is $480.00, a 15% uptick from current prices. Analysts at Wells Fargo are bullish on Tesla (TSLA) stock in the long run thanks to robotics. Alternatively, on Tuesday, GLJ Research analyst Gordon Johnson called Optimus a “delusion,” putting a 15% to 20% probability that Tesla will ever deliver meaningful robotics revenue. Wall Street bulls are “assigning near-certainty to it. That’s not investing. That’s speculation,” he added.