Tesla Stock Slips Amid AI Concerns

TLDR

• Tesla stock dropped 1.7% to $365.44 in premarket trading Monday after Elon Musk endorsed Anthropic CEO Dario Amodei’s call to slow AI development.
• Nvidia fell 2.9%, SpaceX dropped 2%, and Alphabet slipped 0.3% as AI concern spread across the sector.
• Tesla’s CFO Vaibhav Taneja sold 2,606 shares on September 8 at $360.13, a 9.12% reduction in his position, to cover tax obligations.
• Tesla’s last earnings showed revenue of $28.24 billion, up 25.5% year over year, but EPS of $0.33 missed the $0.50 consensus estimate.
• Morgan Stanley values Tesla’s self-driving and robotics at roughly $320 per share, versus just $45 for the car business.

Tesla (TSLA) stock slipped 1.7% to $365.44 in premarket trading Monday after CEO Elon Musk backed a call to slow down AI development. The move added to an already rough stretch for the stock, which was down about 19% this year heading into Monday’s session.

Musk reposted a tweet from Anthropic CEO Dario Amodei on Saturday, writing “Dario is right.” Amodei had published a lengthy essay urging a slowdown in AI development, citing risks including cyberattacks, bioterrorism, and economic disruption.

The essay came after a 27-year-old former Anthropic employee warned publicly that AI could pose an existential risk to humanity. That combination of voices appeared to spook investors.

The selloff hit AI-linked names broadly. Nvidia dropped 2.9%, SpaceX fell 2%, and Alphabet was off 0.3%. S&P 500 futures dropped 0.8%, Nasdaq futures fell 1.8%, and Dow futures slipped 0.2%.

Melius Research analyst Ben Reitzes put the concern plainly on Sunday: “The obvious concern here is whether Dario and his compatriots have killed the AI semis/hardware trade.”

Why AI Matters More Than EVs for Tesla

For Tesla, the AI angle now drives more of the stock’s value than the car business itself. Morgan Stanley analyst Andrew Percoco puts Tesla’s self-driving and robotics opportunities at roughly $320 per share, with the vehicle business valued at closer to $45.

That split explains why an AI sentiment shift moves Tesla more than a typical automaker. Any threat to the AI growth story hits the core of Tesla’s valuation thesis.

On the EV side, Tesla is facing its own pressure points. China sales fell roughly 26% year over year in August, even after the launch of the Model Y Performance. Operating margins have reportedly dropped to 1.4%, and free cash flow has turned negative.

Tesla did confirm its long-delayed Semi truck will begin customer deliveries in Europe in 2027. Morgan Stanley noted that high diesel prices in Europe could help the economics of electric heavy trucks.

Earnings and Analyst Ratings

Tesla’s most recent quarterly earnings, reported July 23, showed revenue of $28.24 billion, up 25.5% year over year and above the $26.42 billion estimate. But EPS came in at $0.33, missing the $0.50 consensus by $0.17.

The stock currently carries a consensus “Hold” rating with an average price target of $414.68. Morgan Stanley has a $840 price target, Stifel has a $491 target with a “Buy” rating, and Barclays raised its target from $360 to $370 with an “Equal Weight” rating.

On September 8, CFO Vaibhav Taneja sold 2,606 shares at $360.13, totaling $938,498. The sale was to cover tax obligations related to vested equity awards and reduced his position by 9.12%.

Tesla’s one-year high stands at $498.83 and its one-year low at $297.38. The 50-day moving average is $353.71, and the 200-day moving average is $381.26.

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