Tesla Inc. (NASDAQ:TSLA) Stock Upgrade and Financial Performance Review

Font: Financial Modeling Prep  • Jan 29, 2026

• Tesla Inc. (NASDAQ:TSLA) receives a "Buy" rating upgrade from Cowen & Co., with a price target increase to $519.
• The company reports an EPS of $0.50, beating expectations, but sees a 3% decline in total revenues to $24.9 billion.
• Tesla's energy segment grows by 25% year-over-year, showcasing the company's diversification beyond electric vehicles.

Tesla Inc. (NASDAQ:TSLA), a leader in the electric vehicle and sustainable energy sector, has been upgraded to a "Buy" rating by Cowen & Co. on January 29, 2026. This upgrade reflects the market's growing confidence in Tesla's innovative approach and future prospects, despite facing challenges in vehicle deliveries and revenue. Tesla's stock price stood at $423.41 at the time of the upgrade, with a revised price target from $509 to $519.

The company's fourth-quarter earnings report revealed an EPS of $0.50, surpassing analyst expectations. However, Tesla faced a slight setback with a 3% decrease in total revenues, amounting to $24.9 billion, which fell short of the Zacks Consensus Estimate of $25.14 billion. Vehicle deliveries also saw a decline, dropping 16% year-over-year to 418,227 units, mainly consisting of the Model 3 and Model Y.

Despite these automotive sales challenges, Tesla's energy segment demonstrated significant growth, with revenues increasing by 25% year-over-year to $3.8 billion. This growth has been crucial in offsetting the declines in the automotive sector. Additionally, Tesla's commitment to innovation is underscored by its $2 billion investment in xAI, an artificial intelligence startup founded by CEO Elon Musk. This investment is a testament to Tesla's ambition to advance its AI capabilities and solidify its position in the emerging robotaxi market, leveraging its proprietary AI chips and expanding Full Self-Driving (FSD) subscriptions.