Is TSLA a good stock to buy? We came across a bullish thesis on Tesla, Inc. on PrimeTrading’s Substack by Alex. In this article, we will summarize the bulls’ thesis on TSLA. Tesla, Inc.’s share was trading at $ 399.27 as of March 17th. TSLA’s trailing and forward P/E were 369.69 and 192.31 respectively according to Yahoo Finance.
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Simultaneously, its energy generation and storage division has emerged as a critical profit driver, with deployments surging 48% year-over-year to 46.7 GWh, generating $12.8 billion in revenue and nearly 30% margins, supported by strong demand for Megapacks amid accelerating AI-driven grid instability. Tesla is also scaling its software ecosystem, surpassing 1.1 million Full Self-Driving users and transitioning to a subscription-based model, enhancing recurring revenue visibility while advancing its autonomous Cybercab initiative.
The core of the investment thesis lies in Tesla’s aggressive push into humanoid robotics through Optimus, targeting a multi-trillion-dollar total addressable market. The company is reallocating resources decisively, including discontinuing Model S and X production to convert Fremont into a dedicated robot manufacturing hub with a long-term goal of producing one million units annually.
Backed by proprietary AI chips, neural network-driven “pixels-to-torque” systems, and advanced actuator technology, Optimus is rapidly progressing toward real-world deployment, with internal factory integration expected in 2026 and external commercialization thereafter.
With over $20 billion in planned CapEx and a $44 billion cash reserve, Tesla is building a formidable compute and manufacturing moat. While valuation remains elevated, the company offers asymmetric upside if it successfully monetizes robotics at scale, positioning itself as a leading platform in the emerging Physical AI supercycle.
Previously, we covered a bullish thesis on Tesla, Inc. (TSLA) by Oliver | MMMT Wealth in April 2025, which highlighted delivery weakness, margin compression, and reliance on future AI, autonomy, and robotics. TSLA’s stock price has appreciated by approximately 71.14% since our coverage. Alex shares a similar view but emphasizes a full pivot toward robotics, energy, and AI-driven infrastructure.
Tesla, Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 137 hedge fund portfolios held TSLA at the end of the fourth quarter which was 120 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 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.
Disclosure: None.
