Tesla, Inc. (NASDAQ:TSLA) took a nosedive late last week, caught up in the trade-related spiral that sent markets reeling. Though TSLA was down roughly 5% on Friday, the overall story over the past few months has been a positive one.
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Indeed, Tesla seems to have gotten its groove back after a rough patch to start the year, climbing over 60% during the past six months. There have been numerous reasons for investors to feel emboldened, including CEO Elon Musk’s decreasing government responsibilities, a potential titanic new compensation package for Musk, and the company’s record-breaking 497,099 vehicle deliveries in Q3 2025.
Still, the naysayers were out in force, positing that the expiring $7,500 EV tax credit created an artificial bump for deliveries, which exceeded the 447,450 vehicles manufactured during the same time period.
Last week, another development hit the airwaves, as Tesla introduced new versions of its Model Y SUV and Model 3 sedan – both priced under $40,000.
Top investor Daniel Sparks believes that “one thing is clear” when it comes to the new models.
“They’ll almost certainly help boost volume in 2026 — and their included self-driving hardware means they will help grow the company’s Robotaxi-ready fleet,” notes the 5-star investor, who is among the very top 1% of stock pros covered by TipRanks.
Sparks argues that the introduction of these cheaper options strengthens the bull case for Tesla in two main ways. For starters, the lower price tag has expanded Tesla’s reservoir of potential customers. This is an especially important move, notes the investor, due to the recent expiration of the $7,500 tax incentive.
Moreover, increasing the number of Teslas on the roads boosts the pool of vehicles that could be part of a future Robotaxi network. Sparks notes that the current Robotaxi program in Austin means that this is no longer just some far-off fantasy.
“Lower entry points can accelerate fleet growth and shipping autonomy-capable hardware across that fleet bolsters the software monetization opportunity,” adds the investor.
That’s not to say that there aren’t some speed bumps on the road to riches, and Sparks reminds investors that the Robotaxi dream is still in its infancy. Meanwhile, the company’s valuation is up in the clouds, meaning that much of the enthusiasm around future growth is already factored into its share price. (To watch Daniel Sparks’ track record, click here)
Wall Street presents a mixed bag of opinions when it comes to Tesla. With 15 Buys, 13 Holds, and 9 Sells, TSLA carries a consensus Hold (i.e. Neutral) rating. Its 12-month average price target of $363.72 implies a downside of ~12%. (See TSLA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.