Baird Lowers PT on Tesla (TSLA), Remains Bullish on the Stocks Long-Term Potential

​Tesla, Inc. (NASDAQ:TSLA) is one of the world’s leading electric vehicle, robot-taxi, and energy system providers. Recently, on April 23, Baird maintained an Outperform rating on the stock and lowered its price target from $538 to $522. Despite the price target reduction, Tesla, Inc. (NASDAQ:TSLA) is among the Best Stocks to Buy and Hold For the Next 5 Years.

​The firm noted that it remains bullish on the stock long-term and the price target reduction is a slight re-rating reflecting near-term caution. In the long term, the firm expects the company’s current pipeline, including autonomy, robotaxi, optimus, and energy, to restore growth over time. Baird highlighted that Elon Musk appears increasingly focused on Tesla’s project pipeline and the upcoming SpaceX IPO, and the firm sees the stock as tied to that event and related merger speculation in the short run.

​That said, Tesla, Inc. (NASDAQ:TSLA) on April 22, released its fiscal Q1 2026 earnings. During the quarter, the company posted $22.39 billion in revenue, reflecting 16% year-over-year growth. However, the GAAP EPS of $0.13 missed the consensus by $0.07. Tesla produced 408,386 vehicles during the quarter, reflecting 13% year-over-year increase and delivered 358,023 vehicles, indicating 6% year-over-year increase. Management noted that they remain focused on optimizing the portfolio for fully autonomous future. The company expects volume production of Cybercab and the Tesla Semi this year. In terms of profitability, Tesla is focused on reducing manufacturing cost through innovation and expects AI to accelerate hardware and software related profits.

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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