Stock analysts on Wall Street have been cautious on Elon Musk’s Tesla (TSLA) in 2026, with shares down over 9% in 2026. Analysts have been quick to call a TSLA investment “risky,” pointing to the company’s shift towards a robotics and AI focus. Tesla (TSLA) has made a notable shift to working on AI efforts and robotics, including releasing its Optimus robot. Investors are optimistic about the potential for AI-trained robots, but there is still some concern about the shift away from vehicles.

Tesla has had an impressive run over the past six months as its shares have beaten the S&P 500 by 10.8%. However, its rough start to the year and poor vehicle sales bring caution. Late last month, Tesla announced it would end production of its long‑running Model S and X to convert the Fremont factory toward manufacturing its Optimus humanoid robots. This comes alongside a 3% YoY revenue decline and 11% drop in automotive revenue, marking Tesla’s first-ever annual decline in sales. The move fuels the sentiment that leading tech giants like Tesla are shifting full-force towards AI.

In addition, Tesla’s units sold came in at 418,227 in the latest quarter, and they declined by 4.9% annually over the last two years. This performance was underwhelming and implies there may be increasing competition or market saturation. It also suggests Tesla might have to lower prices or invest in product improvements to grow, factors that can hinder near-term profitability.

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Instead of Tesla, Wall Street has been very bullish on other magnificent-7 stock members. Amazon (AMZN) and Alphabet (GOOGL) both have buy ratings. Alphabet-owned Waymo has been one of Tesla’s biggest rivals in the autonomous driving industry, one of the catalysts for the latter’s shift towards robotics. Furthermore, Tesla has been affected by the incoming SpaceX and xAI joint IPO, with all three companies being founded by Elon Musk.

According to TipRanks TSLA stats, TSLA is currently trying its best to beat the competition ahead. The Musk-owned automaker is now aiming to hit $600 in the next 12 months, intending to make the most out of its current losses and distracted trajectory.

Source: Watcher Guru