Analyst reiterates Tesla as 'Outperform,' predicting challenges but sees potential big payoff

From Yahoo Finance: 2025-07-01 06:23:00

William Blair reiterated Tesla (TSLA) as “Outperform,” predicting a “bumpy road” ahead but a big payoff. The firm sees potential in Tesla’s move from automaker to AI-driven mobility platform, creating a trillion-dollar market. However, with reduced delivery estimates and competition, risks remain. Investors are advised to navigate bumps tactically.

Despite Tesla’s potential, other AI stocks may offer greater upside with less downside risk. As Tesla faces challenges like canceled models and lower sales, its valuation increasingly relies on the robotaxi business. While William Blair believes in Tesla’s long-term vision, they caution investors to prepare for inevitable hiccups along the way. Consider other AI stocks for investment opportunities.

Read more: William Blair Sticks With Tesla (TSLA): ‘Bumpy Road, Big Payoff’