Tesla (NASDAQ: TSLA) stock has dipped 10% since Tuesday as volatility for several tech stocks has risen as the United States Presidential Election between Incumbent Donald Trump and Democratic Candidate Joe Biden approaches. However, some analysts see it as an opportunity to buy the electric automaker’s stock at a discount.
TSLA has been upgraded to a “Strong Buy” by analysts at CFRA Research, who see the stock’s dip in price as a potential buying opportunity for investors. Based on the upcoming election and Tesla’s potential inclusion into the S&P 500 index, CFRA’s Garrett Nelson believes the time to buy the stock is now.
Nelson maintained the firm’s 12-month price target for TSLA stock at $550, “implying a ’22 P/E of 95.7x. Our adjusted EPS estimates remain $2.30 for ’20, $3.50 for ’21, and $5.75 to ’22,” the analyst wrote. Acknowledging the 6% drop in price during Friday’s trading session, CFRA believes the rise in COVID-19 cases in California, which increases the potential for future lockdowns, could be the reason for the selloff from some shareholders.
$TSLA pic.twitter.com/xRWHPwaiFF
— David Tayar (@davidtayar5) October 30, 2020
-->“We view the selloff as a buying opportunity and raise our view to ‘Strong Buy’ in light of two possible near-term catalysts,” Nelson wrote in a note to investors. “First, we believe TSLA will soon be added to the S&P 500 Index, which could prompt a wave of buying, noting the stock’s 20% drop the day after the September rebalancing was announced.”
Tesla was snubbed from the S&P 500 in early September, which sent the stock tumbling down to $330 from $496 in a matter of nine days. However, there is still a chance that the automaker could make the transition into the S&P in the future, and Nelson believes it could happen soon. The inclusion would likely help the stock rebound in value.
According to the note, the upcoming Presidential Election, which is set to take place on Tuesday, November 3rd, is also a benefit for Tesla. A Biden win is a 68% probability, according to PredictIt, a popular betting exchange. “In the event of a Biden victory on Tuesday, we think TSLA would be a big winner given his proposals would heavily subsidize electric vehicles and solar power,” Nelson said.
With Tesla stock feeling extra pressure as the polls open, it could be considered a potential buying opportunity for many investors. With the company coming off of its best-ever quarter in Q3, there is no lack of demand. Tesla is increasing production rates by introducing new facilities in China, Germany, and the United States to keep up with the growing need for its vehicles globally. However, depending on which way voters sway on Tuesday, the stock could see more swings in either direction, with both candidates offering distinct advantages and disadvantages for sustainable energy companies.
At the time of writing, TSLA shares were trading at $392.77, down 4.4%.
-->Disclaimer: Joey Klender is a TSLA Shareholder.
Tesla bear Michael Burry got blunt with his beliefs over the company’s valuation, which he called “ridiculously overvalued” in a newsletter to subscribers this past weekend.
“Tesla’s market capitalization is ridiculously overvalued today and has been for a good long time,” Burry, who was the inspiration for the movie The Big Short, and was portrayed by Christian Bale.
Burry went on to say, “As an aside, the Elon cult was all-in on electric cars until competition showed up, then all-in on autonomous driving until competition showed up, and now is all-in on robots — until competition shows up.”
Tesla bear Michael Burry ditches bet against $TSLA, says ‘media inflated’ the situation
For a long time, Burry has been skeptical of Tesla, its stock, and its CEO, Elon Musk, even placing a $530 million bet against shares several years ago. Eventually, Burry’s short position extended to other supporters of the company, including ARK Invest.
-->Tesla has long drawn skepticism from investors and more traditional analysts, who believe its valuation is overblown. However, the company is not traded as a traditional stock, something that other Wall Street firms have recognized.
While many believe the company has some serious pull as an automaker, an identity that helped it reach the valuation it has, Tesla has more than transformed into a robotics, AI, and self-driving play, pulling itself into the realm of some of the most recognizable stocks in tech.
Burry’s Scion Asset Management has put its money where its mouth is against Tesla stock on several occasions, but the firm has not yielded positive results, as shares have increased in value since 2020 by over 115 percent. The firm closed in May.
In 2020, it launched its short position, but by October 2021, it had ditched that position.
Tesla has had a tumultuous year on Wall Street, dipping significantly to around the $220 mark at one point. However, it rebounded significantly in September, climbing back up to the $400 region, as it currently trades at around $430.
-->It closed at $430.14 on Monday.
Investor's Corner
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.
Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however.
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.
With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling.
Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot.
“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries.
-->“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted.
Tesla stock (NASDAQ: TSLA) has landed an elusive “must own” status from Wall Street firm Melius, according to a new note released early this week.
Analyst Rob Wertheimer said Tesla will lead the charge in world-changing tech, given the company’s focus on self-driving, autonomy, and Robotaxi. In a note to investors, Wertheimer said “the world is about to change, dramatically,” because of the advent of self-driving cars.
He looks at the industry and sees many potential players, but the firm says there will only be one true winner:
“Our point is not that Tesla is at risk, it’s that everybody else is.”
The major argument is that autonomy is nearing a tipping point where years of chipping away at the software and data needed to develop a sound, safe, and effective form of autonomous driving technology turn into an avalanche of progress.
Wertheimer believes autonomy is a $7 trillion sector,” and in the coming years, investors will see “hundreds of billions in value shift to Tesla.”
A lot of the major growth has to do with the all-too-common “butts in seats” strategy, as Wertheimer believes that only a fraction of people in the United States have ridden in a self-driving car. In Tesla’s regard, only “tens of thousands” have tried Tesla’s latest Full Self-Driving (Supervised) version, which is v14.
Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad
When it reaches a widespread rollout and more people are able to experience Tesla Full Self-Driving v14, he believes “it will shock most people.”
Citing things like Tesla’s massive data pool from its vehicles, as well as its shift to end-to-end neural nets in 2021 and 2022, as well as the upcoming AI5 chip, which will be put into a handful of vehicles next year, but will reach a wider rollout in 2027, Melius believes many investors are not aware of the pace of advancement in self-driving.
Tesla’s lead in its self-driving efforts is expanding, Wertheimer says. The company is making strategic choices on everything from hardware to software, manufacturing, and overall vehicle design. He says Tesla has left legacy automakers struggling to keep pace as they still rely on outdated architectures and fragmented supplier systems.
Tesla shares are up over 6 percent at 10:40 a.m. on the East Coast, trading at around $416.
Tesla Europe rolls out FSD ride-alongs in the Netherlands’ holiday campaign
Tesla sees sharp November rebound in China as Model Y demand surges
