Truist Cuts Tesla (TSLA) PT to $439 as Record Energy Storage Offsets Q4 Delivery Miss

Tesla Inc. (NASDAQ:TSLA) is one of the most buzzing stocks to invest in according to hedge funds. On January 2, Truist analyst William Stein lowered the firm’s price target on Tesla to $439 from $444 with a Hold rating on the shares. Following the company’s Q4 2025 announcement of 418,000 deliveries, Truist characterized the subsequent stock recovery as a better-than-feared reaction from investors. While vehicle deliveries lagged, energy storage deployments exceeded expectations.

However, Truist maintains that the core investment thesis should shift toward AI initiatives, specifically Full Self-Driving/FSD. The firm argues that Tesla’s long-term cash flow and stock valuation are now driven more by these AI advancements than by traditional automotive delivery metrics.

Truist Cuts Tesla (TSLA) PT to $439 as Record Energy Storage Offsets Q4 Delivery Miss

On this day, Tesla Inc. (NASDAQ:TSLA) reported record-breaking performance for Q4 2025, highlighted by the deployment of 14.2 GWh of energy storage products. In terms of vehicle production and logistics, the company produced a total of 434,358 vehicles and delivered 418,227 units during the quarter. The vast majority of this volume was driven by the Model 3/Y line, which accounted for 422,652 units produced and 406,585 delivered. Other models contributed 11,706 in production and 11,642 in deliveries. Notably, 3% of total Q4 deliveries were subject to operating lease accounting.

The full-year results for 2025 show substantial scale across both automotive and energy sectors. Tesla produced a cumulative 1,654,667 vehicles and delivered 1,636,129 units throughout the year. The Model 3/Y remained the primary growth driver with 1,600,767 units produced and 1,585,279 delivered, while other models totaled 53,900 in production and 50,850 in deliveries. Additionally, the company’s energy storage business achieved a total of 46.7 GWh in deployments for the entire year.

Tesla Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells EVs, and energy generation and storage systems in the US, China, and internationally through two segments: Automotive and Energy Generation & Storage.

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.