‘Cautious Optimism,’ Says Top Investor About Tesla Stock

Tesla, Inc. (NASDAQ:TSLA) has been falling this year, with both AI worries and falling EV sales pressuring its share price. TSLA is down some 9% year-to-date.

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An increasingly challenging risk-reward profile had previously convinced one Tesla bull to become quite bearish last month. That would be top investor James Foord.

“I see more downside than upside for TSLA,” stated the 5-star investor in early February, pointing to deteriorating fundamentals and AI ambitions that seemed a bit too farfetched.

Since then, however, there have been developments that might be pointing in the opposite direction. This includes progress with the Tesla Semi truck and improving sales in China.

Now, the investor – who is among the top 3% of stock pros covered by TipRanks – spots some reason for optimism.

“While this is not enough to make me bullish, it’s definitely an improvement, and there’s some potential here worth monitoring,” says Foord.

Foord starts with the Tesla Semi truck. He points out that the company expanded its pilot program, as Mone Transport (a Texas-based logistics firm) became part of its trial fleet. Mone reported 1.64 kWh per mile efficiency, which was better than Tesla’s internal estimates of 1.7 kWh.

“If Tesla can deliver meaningful cost savings per mile, which it seems to have proved, the Semi could become a very attractive product for logistics companies,” adds Foord.

The second piece of good news was the company’s February China-made EV sales, which jumped 91% year-over-year. This seems to be a clear sign to Foord that Tesla’s China business isn’t actually “collapsing.”

All that being said, Foord is not about to ignore the challenges facing Tesla. Global EV competition is increasing and the potential transition from EV maker to AI-driven company will be expensive.

He points out that Tesla has disappointed investors over the past year, and he’s among those who have been feeling the blues.

And yet, while he’s not totally convinced just yet, Foord also identifies potential to jump back on board the Tesla bandwagon going forward.

“If fundamentals here can improve, that may be enough to provide Tesla a solid base from which to actually transform itself into an AI powerhouse,” concludes Foord, who nevertheless maintains a Sell rating for the time being. (To watch James Foord’s track record, click here)

Perhaps reflecting some of Foord’s hopes and fears, Wall Street presents a very mixed picture. With 13 Buys, 11 Holds, and 7 Sells, TSLA carries a Hold (i.e., Neutral) rating. Its 12-month average price target of $399.25 points to minimal downward movement. (See TSLA stock forecast)

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.

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