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Analysts Remain Divided on Tesla Inc.’s (TSLA) Near-Term Outlook

Tesla Inc. (NASDAQ:TSLA) is among the top 10 stocks to buy from Cathie Wood’s stock portfolio. As of the end of Q3 2025, ARK Investment Management’s holding in Tesla stood at $1.6 billion, up from $978 million at the end of Q2, as per its 13F filings. With that, the company accounted for 9.5% of ARK’s total 13F portfolio, up from 7.2% in the prior quarter.

On November 26, Mizuho’s Vijay Rakesh reiterated an Outperform rating on Tesla Inc. (NASDAQ:TSLA) while trimming the price target to $475 from $485, according to TheFly. The target revision was due to a change in the analyst’s estimates after he factored in a softer outlook for electric vehicle demand in both China and the U.S.

Another factor that affected the estimates was the expected 50% decline in Chinese government subsidies for electric vehicles in 2026. Rakesh highlights that Tesla could encounter notable headwinds as these reductions would weigh on industry-wide demand. In addition, he flagged potential challenges for Tesla’s analog components in 2026.

Separately, as per a November 23 Bloomberg report, Tesla Inc. (NASDAQ:TSLA) is close to finalizing the design of its AI5 chip and is about to begin work on the next version, AI6, as per an X post by CEO Elon Musk. These chips are expected to be used in Tesla’s cars and data centers. The CEO appears to have robust plans for growth in this area, as he further said:

“Our goal is to bring a new AI chip design to volume production every 12 months. The current version in cars is AI4, we are close to taping out AI5 and are starting work on AI6.” He added, “We expect to build chips at higher volumes ultimately than all other AI chips combined. I’m not kidding.”

While these plans are commendable, Tesla Inc. (NASDAQ:TSLA) is facing a cautious outlook, with challenges in its core EV business and pressure on vehicle sales. As a result, consensus opinion is mixed at the moment, with only 40% of analysts covering it recommending a Buy on it, as of market close on November 27. The consensus 1-year median potential upside also remains a meagre 2%.

Tesla Inc. (NASDAQ:TSLA) is an EV manufacturer and clean energy company known for its innovative solutions in sustainable transportation and energy.

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.

READ NEXT: 30 Most Fantastic Stocks Every Investor Should Pay Attention To and 10 Hottest Smid-Cap Stocks So Far In 2025.

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

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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