{
  "id": 3084516,
  "title": "Tesla Stock in 2027: Why I Think It Still Has Room to Run",
  "url": "https://urgent.news/2026/08/23/tesla-stock-in-2027-why-i-think-it-still-has-room-to-run-3084516",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-23T09:35:00.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/tesla-stock-2027-why-think-093500285.html"
  },
  "original_language": "en",
  "account": "When friends inquire if they should divest their Tesla shares, I typically respond by posing an alternative question: Do you continue to believe Tesla is among the companies that will shape the next decade of transportation, energy, and automation, or do you now view it merely as a conventional automaker that experienced a successful run? I pose the latter question when considering the potential stock movement by 2027. While the stock's performance has been erratic, I maintain that it still possesses untapped potential.\n\nIn 2009, a robust signal emerged for Nvidia, a lesser-known chip manufacturer. Now, a similar signal is flashing for a company a mere 1/100th the size of Nvidia. Although recent headlines have been unfavorable, investing often necessitates patience, and we must wait before executing our trades. In the second quarter of 2026, Tesla reported revenue of approximately $27 billion, with automotive sales increasing by around 23% year-over-year. However, operating margins narrowed to near 1%, and profit fell short of expectations due to pricing reductions and substantial spending. Furthermore, free cash flow turned negative as capital expenditures (capex) doubled sequentially, with guidance projecting over $25 billion in capex for the year.\n\nOn the surface, Tesla appears to be exerting itself for less earnings, which explains the stock's stagnation. However, upon closer examination, I perceive Tesla as constructing the necessary groundwork rather than squandering resources aimlessly. Vehicle production and deliveries in the first quarter continued to rise, with over 408,000 units produced and 358,000 delivered. Energy storage installations reached 8.8 gigawatt-hours, suggesting a burgeoning business in grid-scale batteries and residential storage that Wall Street frequently overlooks. Most crucially, the software narrative is finally beginning to align with the hardware narrative. Subscriptions among current owners for Tesla's full self-driving (FSD) feature amounted to about 1.28 million active users in the first quarter, representing a roughly 51% increase from the previous quarter, and Tesla disclosed hundreds of millions of dollars in annual recurring revenue from FSD alone. This revenue stems from software running on already sold cars, generating high-margin income without constructing additional factories. As Tesla expands this subscriber base and eventually transforms FSD into a more-autonomous robotaxi platform, the earnings potential per vehicle could diverge significantly from that of traditional automakers. Additionally, the influence of Elon Musk cannot be disregarded, regardless of one's opinion on him. His Space Exploration Technologies (NASDAQ: SPCX) went public in June 2026 with a valuation of around $1.75 trillion, briefly trading above $2 trillion, and retail investors rushed in so swiftly that the stock became one of the most actively purchased names during its initial hours of trading. Musk has cultivated a cultlike following among a specific segment of technology-savvy investors who are prepared to back his initiatives for extended periods as long as they observe progress. This sentiment influences Tesla. Many shareholders do not perceive the company as merely a car stock; they regard it as a stake in Musk's overarching vision, and this long-term loyalty is one of the reasons management has been able to fund ambitious endeavors such as FSD, Optimus humanoid robots, and new battery plants, even when short-term margins appear thin.\n\nSo, should you sell your Tesla shares? The answer depends on the reason behind your initial investment. If you entered the stock market solely for short-term multiple expansion and now feel uneasy about margin pressure and capex, reducing your position may be warranted. However, if you hold Tesla shares because you believe it will become one of the foundational platforms for electric vehicles, energy storage, and autonomous mobility by the early 2030s, the current volatility may appear more akin to the price of admission than a reason to sell. In my own portfolio, I plan to accumulate Tesla shares in 2027, acknowledging that the stock will fluctuate with every earnings report and even Musk's tweets. Beneath the noise, this company is adding hundreds of thousands of cars, millions of software subscribers, and gigawatt-hours of storage capacity while training massive AI models on real-world driving data. To me, this combination still holds significant growth potential.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 3,
    "also_reported_by": [
      {
        "outlet": "Motley Fool",
        "title": "Tesla Stock in 2027: Why I Think It Still Has Room to Run",
        "url": "https://urgent.news/2026/08/23/tesla-stock-in-2027-why-i-think-it-still-has-room-to-run",
        "published": "2026-08-23T09:15:00.000Z"
      },
      {
        "outlet": "Nasdaq Markets",
        "title": "Tesla Stock in 2027: Why I Think It Still Has Room to Run",
        "url": "https://urgent.news/2026/08/23/tesla-stock-in-2027-why-i-think-it-still-has-room-to-run-2771346",
        "published": "2026-08-23T09:35:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}