Tesla, Inc. (TSLA): A Bull Case Theory 

We came across a bullish thesis on Tesla, Inc. on Rose’s Substack’s Substack by Rose Celine Investments. In this article, we will summarize the bulls’ thesis on TSLA. Tesla, Inc.’s share was trading at $431.46 as of January 28th. TSLA’s trailing and forward P/E were 297.56 and 196.08 respectively according to Yahoo Finance.

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Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. TSLA reported revenues up 12%, slightly exceeding expectations, while earnings came in just below estimates. Auto revenue grew a modest 6% despite the pull-forward from expiring federal credits, but energy and services surged 44% and 25%, now representing a quarter of total revenue. These segments carry higher margins than automotive, meaning the shift in revenue mix is particularly beneficial for overall profitability.

Looking ahead, Tesla confirmed that Cybercab, Semi, and Megapack 3 will enter production in 2026, with Optimus v3 expected to debut in the first quarter. The Robotaxi rollout is progressing, with Austin projected to operate without safety drivers this year. Production and delivery numbers continue to ramp steadily, and Tesla’s factories appear capable of supporting these new products. Strong cash reserves and ongoing CapEx plans provide ample runway for execution.

From a profitability perspective, Tesla’s new products carry significant optionality. Robotaxi miles could generate near-pure profit, Megapack deployments are capital-efficient, and Optimus could unlock entirely new revenue streams. This optionality, combined with Tesla’s software, autonomous driving data, manufacturing scale, battery expertise, and superior supply chain positioning, creates a durable moat that competitors will struggle to replicate.

The potential market is massive, encompassing billions of autonomous miles, hundreds of Megapack installations, and humanoid robots performing practical tasks. Key milestones to watch include regulatory approvals, factory ramps, Robotaxi without safety drivers, and Optimus v3 deployment. Given the high-margin growth in energy and services, Tesla’s expanding optionality, and its unmatched competitive advantages, the company offers asymmetric upside for long-term investors. While execution risks and competition remain, Tesla’s strategic positioning and optionality make it a compelling bullish opportunity, with the potential to redefine its revenue base over the next decade.

Previously, we covered a bullish thesis on Tesla, Inc. (TSLA) by Oliver | MMMT Wealth in April 2025, which highlighted long-term potential in autonomy, AI, robotics, and energy despite weak deliveries and margin pressures. TSLA’s stock price has appreciated by roughly 97.80% since our coverage. Rose Celine Investments shares a similar thesis but emphasizes the growing energy and services contribution and optionality from Robotaxi, Optimus v3, and new product launches.

Tesla, Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 120 hedge fund portfolios held TSLA at the end of the third quarter which was 115 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.

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Disclosure: None.