Tesla Stock Slips Premarket As EV Headwinds Mount — But One Wall Street Firm Sees Over 30% Upside On A ‘Physical AI’ Future

Tigress called Tesla a “multi-layered physical AI platform,” driven by FSD subscriptions, robotaxi ambitions, and Optimus robots.

• Tigress Financial resumed coverage of Tesla with a Buy rating and a $550 price target, implying a 32% upside.
• The Trump administration revoked the greenhouse-gas endangerment finding underpinning emissions rules.
• China's demand remained weak despite stronger exports, with Tesla’s January retail sales in China falling 45% year-on-year.

Shares of Tesla, Inc. fell 0.3% in premarket trading on Friday, extending recent pressure on EV stocks even as one Wall Street firm struck a bullish long-term tone, arguing Tesla’s future is increasingly tied to AI rather than car sales alone.

TSLA stock snapped a four-day winning streak on Thursday to end 3% lower at $417.07, and fell another 0.2% in after-hours trading.

Tigress: Tesla’s AI Flywheel Extends Beyond Cars

Tigress Financial resumed coverage of Tesla with a ‘Buy’ rating and a $550 price target, implying a 32% upside from the stock’s last close. The brokerage called Tesla a “multi-layered physical AI platform” rather than a pure-play EV manufacturer.

The firm said long-term value creation is being driven by a “physical AI growth flywheel,” built on expanding Full Self-Driving subscriptions, robotaxi ambitions, and Optimus humanoid robots, layered on top of Tesla’s already profitable EV and energy businesses.

Regulatory Shock Weighs On EV Sentiment

Tesla shares have come under broader sector pressure after the Trump administration revoked the long-standing finding that greenhouse gases endanger public health, a key regulatory foundation underpinning U.S. vehicle emissions standards and EV adoption.

Following the announcement, Tesla and rivals such as Rivian and Lucid slid as much as 5%, while legacy automakers that have recently pulled back on EV investments traded higher. U.S. President Trump said the funding lacked a factual or legal basis, while Environmental Protection Agency (EPA) Administrator Lee Zeldin described the move as the “single largest deregulatory action in U.S. history.”

The EPA said the change could save consumers more than $2,400 per vehicle by eliminating compliance costs associated with emissions regulations.

Adding to uncertainty across the EV supply chain, the U.S. has finalized steep new tariffs on anode-grade graphite imports from China, a key battery material. The Commerce Department set a combined antidumping and countervailing duty exceeding 160%, targeting material it said was sold below fair market value and unfairly subsidized. This could weigh on margins for EV makers. 

China Demand Weakens Despite Export Strength

Tesla is also facing demand challenges in China, where January retail sales fell to 18,485 vehicles, the lowest monthly figure since November 2022. Retail deliveries dropped 45% year-on-year and more than 80% from December.

That weakness was partially offset by exports from Tesla’s Shanghai factory, which surged 71% year-on-year to 50,644 vehicles. Including exports, total wholesale deliveries rose 9.3% annually to 69,129 units, though they declined nearly 29% from December levels.

Industry-wide softness added to the pressure, with China’s new energy vehicle sales down 20% in January amid new purchase taxes and reduced subsidies.

Debate Over Tesla’s Pricing And Brand Strategy

Adding to the scrutiny, the Future Fund managing partner, Gary Black questioned Tesla’s sub-$40,000 starting prices for the Model 3 and Model Y. Black said Tesla is fundamentally a premium brand and argued that focusing on price is “not very smart,” suggesting the company should instead emphasize advantages such as charging ease, range, performance, operating costs, and self-driving capabilities.

While base versions of the Model 3 and Model Y start below $40,000 in the U.S., most variants, along with the Model S, Model X, and Cybertruck, are priced well above that level.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment for TSLA was ‘bullish’ amid ‘low’ message volume.

One user said, “for a $900 stock by the end of this year, buying around the low $400s screams a big gift to all of us. Think about how fast this will accelerate and can take of any day now. It's a no brainer to Load the boat right now.”

Another user said, “Dip to $200, then rip to $1200 all in 2026”

TSLA stock has risen 24% over the past 12 months.

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