"Don't short Musk" becomes a Wall Street code phrase? AI and Siasun Robot&Automation narrative heats up, Tesla, Inc. (TSLA.US) short sellers retreat, hold ratings surge.

Tesla, Inc. (TSLA.US) shares have fallen sharply in 2026, yet Wall Street analysts are increasingly reluctant to recommend selling the stock. Compiled data shows that among 61 analysts' ratings on Tesla, Inc., "sell" ratings currently account for only 13.1%. That is the lowest share since April 2023, when concerns about profit margins weighed on its valuation and 12.8% of analysts recommended selling the stock. In January, the share of "sell" ratings reached a 2026 high of 23.3%. The retreat in bearish voices comes as CEO Elon Musk seeks to transform Tesla, Inc. from an automaker into a physical artificial intelligence (AI) giant, shifting its focus from electric vehicles to robotaxis and humanoid Siasun Robot&Automation. "There's a 'don't short Musk' vibe in the market right now," said Max Gokhman, senior vice president at Franklin Templeton Investment Solutions. "It has proven that even with multiple delays, his grand visions can still come to fruition. For analysts, a neutral view is better than making the wrong call." Franklin Templeton holds Tesla, Inc. shares. However, the decline in skepticism does not necessarily mean optimism is rising. The latest "sell" rating on Tesla, Inc. disappeared not because an analyst upgraded the stock, but because long-time bear Colin Langan left Wells Fargo & Company. After Langan's departure, the bank suspended coverage of Tesla, Inc. and 17 other auto companies. Meanwhile, the proportion of "hold" equivalent ratings on Tesla, Inc. has risen to the highest level in more than two years as a share of all recommendations. Tesla, Inc. shares have fallen 21% this year, while the S&P 500 has risen 12% over the same period. Among the large tech giants, Tesla, Inc. remains an exception. Among the "Magnificent Seven" U.S. stocks, five companies have fewer than 2% of analysts with negative ratings, while only 10.7% of analysts are bearish on Apple Inc. (AAPL.US). Ivan Feinseth of Tigress Financial Partners said analysts covering Tesla, Inc. "increasingly recognize that the company may have significant option value in autonomous driving, Siasun Robot&Automation and AI, which makes using traditional automaker valuation methods inappropriate. But that also raises the execution bar: the higher the valuation assigned to these future businesses, the more Tesla, Inc. will ultimately need to prove they can generate substantial revenue, margins and returns." Tesla, Inc.'s track record in delivering on such grand visions has been uneven. Critics have long accused Musk and Tesla, Inc. of overpromising and failing to deliver on schedule, while Wall Street has been waiting for autonomous driving technology and Optimus Siasun Robot&Automation to become meaningful sources of profit. In recent weeks, the company's Cybercab debut failed to meet investor expectations and triggered a federal investigation into whether it complies with safety standards. Still, Musk has achieved ambitions that once seemed out of reach, and his supporters believe he can do it again. Many investors bullish on Musk also hope he will merge Tesla, Inc. with SpaceX (SPCX.US), the rocket, satellite and artificial intelligence company he also leads. "The market's overall attitude toward AI concept stocks is positive, but investors have returned to rationality," said Dirk Mullarkey of SLC Management, which holds Tesla, Inc. shares through index positions. "They are demanding evidence of revenue potential and are more clear-eyed about valuation." He added that, by contrast, "the stock analyst community as a whole is biased toward optimism."