Investor's Corner
Ex-Tesla critic and ‘Shark Tank’ judge explains why he likes his TSLA investment
There was once a time when legendary Canadian businessman and longtime Shark Tank Judge Kevin O’Leary remarked that he hated Tesla stock (NASDAQ:TSLA). But since becoming an investor in the electric car maker, “Mr. Wonderful” has changed his stance on Tesla, even remarking recently that he has actually become quite fond of the company.
During a recent appearance at CNN’s MarketsNow, O’Leary discussed his philosophy of only investing in companies that exhibit strength in terms of profitability, cash earnings, and balance sheets. This makes him quite cautious in his investments, as even unicorns that rise to popularity do not meet his cut. “Quality is my mantra in investing,” he remarked.
Yet, amidst his investments, the veteran businessman admitted that he is becoming quite fond of one stock that he has bought recently. That stock was TSLA, which he was able to purchase while shares were down this year. Since buying TSLA stock, O’Leary mentioned that he has seen growth in his investments, and little by little, he believes that Tesla is turning into a “real company that makes money” for its shareholders.
“Here’s an example of one that’s turning the corner for me; that I’m actually an investor in: Tesla. Why? Because I can now see the path to profitability. I’m up 38% on Tesla, and the only reason I bought it is my son got a job, basically an apprentice there, an intern. And I said, ‘Trevor, on your behalf, I’m going to buy a bunch of stock, because the stock now is 13% today, had a bad quarter.
“Within six months, the thing is now breaking even, looks cash flow positive in quarter two. So as a result, the market has regraded the stock and it’s up over 30%. And I rest my case, your honor, it’s turning into a real company that makes money for shareholders,” he said.
The Shark Tank judge has previously mentioned that his TSLA investment was partly driven by what he saw was the amount of quality talent that the electric car maker can attract. In a statement to CNBC, “Mr. Wonderful” noted that he has seen how talented engineers from the best universities seem to flock to Tesla instead of other, more traditional automakers.
During electric vehicle races, for example, O’Leary said that Tesla staff in attendance would usually find themselves meeting with a number of potential engineers. This stands in sharp contrast to veteran automakers, who appear to encounter some difficulties when it comes to attracting fresh, aggressive talent.
“Colleges and universities around the world with an engineering department generally puts forward an electric Formula 1 car and engineering teams in their graduating years race these cars all over the world. I’ve been hanging out at the pits with these engineers, and I’ve learned something extraordinary. When you go to one of these races… when the race is over, the winning team — they come from anywhere on Earth — who do they want to talk to?
“They want to talk to the Tesla hiring team there; the HR people hanging around at the pits. Every one of these engineers, the smoking hot kids that sit with their cars, the men and women that sleep with them for 24 hours a day; it’s an unusual culture I’ve never seen before. They all want to work at Tesla. Why? Because the teams are six to eight people. If they go to a legacy car company, they get drowned out in the back somewhere. These smart, young, men and women make a big difference as interns. I can’t believe the access to talent they have. That’s why I bought the stock,” O’Leary said.
Tesla stock has seen a sharp rise since it posted surprise profits in the third quarter, beating Wall Street’s estimates. Tesla’s recovery has been notable, with the electric car maker’s market cap recently reaching all-time-highs. Some positive developments may be in store for Tesla as well, with the release of Elon Musk’s Cybertruck, the rollout of the Made-in-China Model 3, and the ongoing ramp of Tesla Energy.
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.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Investor's Corner
Tesla wins $508 price target from Stifel as Robotaxi rollout gains speed
The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Tesla received another round of bullish analyst updates this week, led by Stifel, raising its price target to $508 from $483 while reaffirming a “Buy” rating. The firm cited meaningful progress in Tesla’s robotaxi roadmap, ongoing Full Self-Driving enhancements, and the company’s long-term growth initiatives.
Robotaxi rollout, FSD updates, and new affordable cars
Stifel expects Tesla’s robotaxi fleet to expand into 8–10 major metropolitan areas by the end of 2025, including Austin, where early deployments without safety drivers are targeted before year-end. Additional markets under evaluation include Nevada, Florida, and Arizona, as noted in an Investing.com report. The firm also highlighted strong early performance for FSD Version 14, with upcoming releases adding new “reasoning capabilities” designed to improve complex decision-making using full 360-degree vision.
Tesla has also taken steps to offset the loss of U.S. EV tax credits by launching the Model Y Standard and Model 3 Standard at $39,990 and $36,990, Stifel noted. Both vehicles deliver more than 300 miles of range and are positioned to sustain demand despite shifting incentives. Stifel raised its EBITDA forecasts to $14.9 billion for 2025 and $19.5 billion for 2026, assigning partial valuation weightings to Tesla’s FSD, robotaxi, and Optimus initiatives.
TD Cowen also places an optimistic price target
TD Cowen reiterated its Buy rating with a $509 price target after a research tour of Giga Texas, citing production scale and operational execution as key strengths. The firm posted its optimistic price target following a recent Mobility Bus tour in Austin. The tour included a visit to Giga Texas, which offered fresh insights into the company’s operations and prospects.
Additional analyst movements include Truist Securities maintaining its Hold rating following shareholder approval of Elon Musk’s compensation plan, viewing the vote as reducing leadership uncertainty.
@teslarati Tesla Full Self-Driving yields for pedestrians while human drivers do not…the future is here! #tesla #teslafsd #fullselfdriving ♬ 2 Little 2 Late – Levi & Mario
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