Tesla (NASDAQ: TSLA) and Nvidia (NASDAQ: NVDA) are the two of the most highly traded and widely discussed stocks on the market. Dan Ives at Wedbush recently said they were two of the "best disruptive technology companies in the world." But most Wall Street analysts see one stock as the better buy.
Among the 56 analysts who follow Tesla, the median target price is $307 per share. That implies 22% upside from the current share price of $251. Among the 69 analysts that follow Nvidia, the median target price is $168 per share.
That implies 64% upside from the current share price of $102. Wall Street analysts in aggregate view Nvidia as a better buy than Tesla at current prices. Here's what investors should know.
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Tesla Tesla reported dismal first-quarter financial results that missed estimates on the top and bottom lines. Sales fell 9% to $19.3 billion, operating margin contracted 3 percentage points to a six-year low, and non-GAAP net income dropped 40% to $0.27 per share. The company also withheld guidance for the second quarter because of uncertainty surrounding U.S. trade policy.
Importantly, CEO Elon Musk on the quarterly conference call acknowledged that his role in the Department of Government Efficiency (DOGE) has brought blowback on Tesla. The company has ceded its position as the leader in battery electric vehicle sales to Chinese automaker BYD, in part because Musk inadvertently politicized Tesla. Even longtime Tesla bull Dan Ives warned that the brand destruction caused by Musk would be permanent if he failed to separate himself from politics and refocus on the company in the near future.
Asset manager Ross Gerber even told Bloomberg that Musk "doesn't care" about Tesla anymore. Fortunately, Musk seems to have taken the hint. He said on the first-quarter earnings call that his "time allocation at DOGE will drop significantly" in the coming months.
Musk also said the company remains on track to launch robotaxi services in Austin by June and predicted Tesla would eventually have 99% market share in autonomous ride-sharing. Importantly, Musk believes robotaxis could "move the financial needle in a significant way" by the second half of 2026. Of course, the company has overpromised and underdelivered in the past, but some analysts believe the narrative.
Gene Munster at Deepwater says Tesla may be a "train wreck" in the short run but a "rocket ship" in the long run.
