Tesla stock isn't a buy right now, for one analyst, despite "immense" potential for AI to transform the company.
Citizens analyst Andrew Boone launched coverage of Tesla stock with a Hold rating and no price target, according to ratings aggregators. Barron's hasn't seen a copy of the full report. Citizens didn't immediately respond to a request for comment.
Boone is focused on Tesla's physical AI efforts -- putting AI computing into objects that interact with the real world such as robo-taxis and humanoid robots. There is a lot of potential, but significant earnings from either of those businesses is too far away for him. What's more, the slow ramp of Tesla's robo-taxi business could eventually disappoint investors.
The Elon Musk-led company launched a robo-taxi service in Austin, Texas, in June 2025. Now, it operates in a few cities, but Tesla doesn't expect significant sales and earnings from self-driving cabs until 2027 at the earliest.
Tesla stock was up 0.4% in premarket trading at $395.77, while S&P 500 futures were up 0.2% and Dow Jones Industrial Average futures were down 0.2%.
The lukewarm rating isn't having a big effect. Coming into Thursday trading, Tesla stock was down about 6% over the past two days, leaving shares flat for the week.
The stock has been stuck for a while, with investors looking for more progress on physical AI. Coming into the day, shares were down about 12% so far this year.
Overall, about 40% of analysts covering Tesla stock rate shares Buy. The average analyst Buy-rating ratio for S&P 500 stocks typically ranges from 55% to 60%. The average analyst price target for Tesla stock is about $406, according to FactSet.
Write to Al Root at allen.root@dowjones.com
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July 09, 2026 07:11 ET (11:11 GMT)
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