Tesla, Inc. (TSLA): A Bull Case Theory

We came across a bullish thesis on Tesla, Inc. (TSLA) on Substack by Oliver | MMMT Wealth. In this article, we will summarize the bulls’ thesis on TSLA. Tesla, Inc. (TSLA)’s share was trading at $233.29 as of April 7^th. TSLA’s trailing and forward P/E were 114.36 and 83.33 respectively according to Yahoo Finance.

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Tesla (TSLA) had a tough Q1, with shares down 30% YTD despite a relatively stable March. The recent Q1 delivery report was disappointing, showing a 13% year-over-year decline—an alarming signal for a company once seen as a transformative force in the auto industry. Alongside weak deliveries, margins have compressed, now reverting to 2020 levels, while Elon Musk appears distracted with ventures outside of Tesla. The lack of Full Self-Driving (FSD) revenue and Waymo’s growing dominance also highlight Tesla’s current struggles. Despite these headwinds, the long-term investment thesis remains rooted in Tesla’s ambitions beyond automobiles—centered on autonomy, AI, robotics, energy, and data. While the current 107x PE multiple now seems increasingly hard to justify given execution concerns, especially when compared to AI peers like Nvidia and Alphabet, Tesla’s foundational vision still holds promise. The reliance on Nvidia’s hardware further muddies the valuation narrative. However, weakness in the stock may soon create a favorable setup. A price drop below $200 could present a compelling long-term opportunity as sentiment bottoms and forward-looking investors begin to reengage with the bigger picture. For now, patience may be prudent, but TSLA remains one to watch as the year unfolds.

Tesla, Inc. (TSLA) is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 126 hedge fund portfolios held TSLA at the end of the fourth quarter which was 99 in the previous quarter. While we acknowledge the risk and potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.