Tesla’s Stock: A Battle of Visions Between AI Dreams and Auto Realities

Tesla shares have become a focal point for a fundamental Wall Street debate, caught between the immediate pressures of a cooling electric vehicle market and the long-term promise of its artificial intelligence ambitions. This clash of perspectives was thrown into sharp relief this week as leading financial institutions issued starkly contrasting research notes, fueling significant market volatility.

The immediate catalyst for the stock’s movement was a downgrade from Morgan Stanley on Monday. The firm’s analyst, Andrew Percoco, expressed caution regarding Tesla’s “bumpy” road ahead, pointing to an exceptionally rich valuation that trades at over 200 times expected earnings. He also substantially reduced volume forecasts for 2026, citing signs of Read more...