Tesla Shares Climb 1.39% on $19B Trading Volume Amid Analyst Divergence

Tesla (TSLA) closed 1.39% higher on August 18, 2025, with a trading volume of $19.00 billion, down 22.83% from the previous day. The stock’s performance followed mixed analyst sentiment and ongoing strategic developments.

Bank of America reiterated a “Neutral” rating for Tesla, citing progress in expanding its robotaxi network, which aims to cover half of the U.S. by 2025. The firm acknowledged Tesla’s leadership in AI-driven autonomous driving but noted that other AI stocks may offer more favorable risk-rebalance profiles. Analysts emphasized the need for tangible execution on robotics and self-driving initiatives to justify long-term optimism.

Recent earnings results highlighted challenges, including a 12% year-over-year revenue decline and a 23% drop in EPS. Goldman Sachs and UBS revised price targets, with Goldman raising its target to $315 and UBS lowering it to $215, reflecting divergent views on the company’s ability to navigate regulatory hurdles and competitive pressures. Analysts also highlighted risks from rising EV competition and recalls of the Cybertruck due to safety concerns.

Bull case scenarios hinge on the success of the Cybertruck and Optimus robot, with potential market adoption driving revenue diversification. However, bearish factors include Elon Musk’s divided focus between Tesla and DOGE, as well as institutional investor exits, with institutional ownership now at 48.59%. The introduction of affordable EVs by new entrants, such as Jeff Bezos-backed Slate, further complicates Tesla’s market position.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a total profit of $2,340 from 2022 to the present. This generated a 23.4% cumulative return, indicating modest gains amid market volatility and a conservative approach.