Tesla Downgraded, Microsoft Upgraded by SA Analysts: LLY, NBIS

Tesla's stock should trade at a lower price due to fundamental weaknesses and skepticism about its self-driving technology, according to Anna Sokolidou. In contrast, Microsoft received an upgrade from Star Investments, which sees the company's premium valuation as justified.

Tesla's stock has come under scrutiny following recent reports that the company's self-driving technology faces fundamental weaknesses and skepticism. Anna Sokolidou, an industry expert, has expressed concerns about the current state of Tesla's autonomous driving capabilities, suggesting that these issues could lead to a lower stock price [1].

In contrast, Microsoft has received a positive upgrade from Star Investments, which believes that the company's premium valuation is justified. The upgrade reflects Star Investments' confidence in Microsoft's ability to maintain its market leadership and continue driving growth through innovative technologies [2].

The discrepancy in analyst opinions highlights the varying perceptions of Tesla and Microsoft's technological prowess and market positioning. While Tesla faces challenges related to the development and deployment of its self-driving technology, Microsoft's strong track record and diversified revenue streams provide a more stable foundation for investors.

Tesla's recent software update, version 2025.26.7, has introduced the conversational AI assistant Grok AI, but its rollout has faced regional delays, particularly in Canada. This delay underscores the complexities of international software deployment and the need for companies like Tesla to navigate diverse regulatory landscapes [1].

Despite these challenges, Tesla continues to invest in AI and other advanced technologies to enhance the user experience and drive innovation. The company's approach of gradually releasing features like Grok AI allows for iterative refinement based on user feedback, ensuring both innovation and reliability.

In conclusion, while Tesla's stock faces potential headwinds due to skepticism over its self-driving technology, the company's ongoing efforts to improve its software and AI capabilities may ultimately mitigate these concerns. The contrasting opinions of analysts highlight the importance of a balanced perspective when evaluating the stock performance of technology companies.

References:

[1] https://opentools.ai/news/teslas-latest-update-2025267-rolls-out-with-grok-ai-as-canada-waits
[2] https://opentools.ai/news/microsoft-receives-upgrade-from-star-investments