Analyst on Tesla (TSLA): ‘It Looks Like a Great Breakout’

We recently published 10 Stocks Everyone’s Talking About As AI Investments Continue. Tesla, Inc. (NASDAQ:TSLA) is one of the stocks analysts were recently talking about.

Jeff deGraaf, Renaissance Macro head of technical research, said in a recent program on CNBC that Tesla Inc (NASDAQ:TSLA) shares have gained momentum and the stock can “breakout.”

“It looks like a great breakout to me. It’s got a lot of momentum. It really has been consolidating for about four months. You had the big momentum surge off the lows in April with a lot of names, obviously, and it’s been kind of dead money here for several months. Now it’s really starting to add to that. So I think pretty easily this thing can trade back to the old highs. That’s a pretty good move from here, and I own it personally, so for full disclosure, but I think there’s a lot more to go here. So it’s a bullish setup.”

Tesla’s recently reported strong Q3 deliveries, as expected, amid a temporary boost due to pull-forward demand due to the end of EV tax credits. Tesla’s latest announcement of cheap models failed to impress the market. It also shows Tesla is losing pricing power amid intense competition. Cheaper models are also expected to negatively impact its auto margins. In Europe, the new budget models will face intense competition from European and Chinese brands which are already offering several models under or near $30,000.

In 2024, Tesla’s global deliveries fell for the first time, while the company is expected to see another 10% this year, Reuters reported. China’s BYD recently reported a whopping 800% increase in UK sales and the company is beating Tesla in most of Europe.

Baron Focused Growth Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its second quarter 2025 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles (EVs), solar products, and energy storage solutions, while also developing advanced real-world AI technologies. Despite ongoing macroeconomic challenges and regulatory complexities, shares climbed after Tesla completed a limited commercial rollout of its highly anticipated robotaxi business in Austin—following more than a decade of development and billions of dollars in investment. This milestone signals a potentially transformative shift in the automotive industry and opens up a sizable new market beyond the company’s core operations. Investor sentiment also improved after Elon Musk stepped back from government-related engagements, boosting confidence in Tesla’s near-term execution. Tesla introduced a refreshed Model Y globally, featuring design and performance upgrades, and outlined plans to unveil new mass-market models starting next quarter. Meanwhile, the company is progressing toward scaling production of its humanoid robot, adding another dimension to its long-term growth story.”

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 time frame. If you are looking for an AI stock that is more promising than TSLA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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