Tesla Stock Hits a Pothole as Chip Shortages and Cooling Sales Deflate Growth

Tesla TSLA +0.49% ▲ is moving fast to become an AI and robotics giant in 2026, but the transition is hitting some rough patches. While the company is pouring money into its Cybercab and Optimus robot projects, it is also dealing with renewed fears of a computer chip shortage and a cooling car market.

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Tesla Spends Billions to Build a New Future

Tesla is currently in a period of heavy spending. Management has planned a budget of over $20 billion for 2026 to build new factories for its Cybercab robotaxi and its Optimus humanoid robot. This money is also going toward massive new computer clusters needed to train its AI. Because this spending is so high, Tesla is currently spending more cash than it brings in, which is a big change from its recent years of profit growth.

Tesla Struggles with Robotaxi Safety and Production

The robotaxi service is the heart of Tesla’s plan, but it is moving slowly. Testing in Austin, Texas, has faced hurdles, including reports of system errors that have kept human safety monitors in the driver’s seat. While the company wants to scale this service to nine cities in the first half of 2026, the tech still has to prove it can run safely without human help. At the same time, Tesla is shifting its factory space to prioritize building robots, which adds even more pressure to get its production lines right.

Tesla Faces Pressure from Chip Shortages

Manufacturing the hardware needed for these AI goals is a new problem. A messy dispute between Dutch chipmaker Nexperia and its Chinese owners has caused recent disruptions in the supply of power-management chips, small but vital parts needed for both cars and consumer electronics. Because these chips are used everywhere, any supply chain blockage could make it harder for Tesla to keep its production lines moving smoothly, threatening to slow down their sales targets.

Investors Question Tesla’s Financial Path

Wall Street is now split on whether the stock is a Buy. Major banks like JPMorgan JPM +0.15% ▲ and Morgan Stanley MS +0.11% ▲ have expressed caution, arguing that Tesla’s current share price expects a future that the company hasn’t earned yet. They point to falling car sales and the fact that Tesla is spending double what it spent last year while its earnings have dipped. While some investors still believe in the AI chapter of Tesla’s story, others worry that the company is trying to do too much, too soon, while its core business of selling cars is shrinking.

Is Tesla a Buy, Sell, or Hold?

Turning to Wall Street, TSLA stock has a Hold consensus rating based on 13 Buys, 11 Holds, and seven Sells assigned in the last three months. At $399.25, the average Tesla price target implies a 0.14% upside potential.

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