Is Tesla (TSLA) One of the Best Growth Stocks to Buy Now?

Tesla Inc. (NASDAQ:TSLA) is one of the best growth stocks to buy now. On October 9, RBC Capital analyst Tom Narayan maintained a Buy rating on Tesla and set a price target of $500.00. This rating came ahead of the company’s Q3 2025 earnings report. As for Q2, Tesla reported making $22.50 billion in total sales. This represented an 11.78% decline year-over-year.

However, the company’s automotive revenue saw a 19% sequential increase, with total vehicle deliveries improving by 14%. The company generated $146 million in free cash flow. Despite these gains, costs were impacted by tariffs, resulting in a sequential cost increase of $300 million for both the automotive and energy sectors, with further increases anticipated.

Is Tesla (TSLA) One of the Best Growth Stocks to Buy Now?

Additionally, the impending expiration of consumer credits for residential storage by the end of the year poses challenges to the energy business. The company anticipated potentially rough quarters ahead due to the loss of US incentives and the inherent risks of being in the early stages of autonomy development.

Tesla Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles and energy generation & storage systems in the US, China, and internationally.

While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSLA and that has 100x 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.