A conservative wealth firm is betting big on Tesla stock despite the company’s rocky performance in early 2025. The firm’s decision comes as Tesla’s stock dropped 28-30% following disappointing delivery numbers in China and Europe. This move highlights a fundamental divide among investment professionals about Tesla’s future direction.
Tesla’s current valuation sits at $1.42 trillion, far above traditional automakers. The company trades at premium prices that reflect growth expectations rather than current profits. Over 90% of Tesla’s revenue still comes from vehicle sales, even though the company’s leadership emphasizes artificial intelligence and robotics as future drivers of growth. Market share losses in China, where Tesla’s position fell from 11.7% to 7.5% in the first half of 2025, underscore the intensifying competitive pressures facing the company.
Tesla’s $1.42 trillion valuation reflects growth expectations, yet 90% of revenue still derives from vehicle sales, not AI or robotics.
The recent downturn stems from serious challenges. Vehicle registrations have declined in key markets. Tesla’s implemented price cuts to maintain sales volume, but these reductions squeeze profit margins. Competitive pressure from other electric vehicle manufacturers continues rising. International headwinds from changing subsidy programs and tariff structures add complexity to operations. This volatility makes Tesla sensitive to negative news, which can trigger sharp market reactions among investors. Tesla’s Full Self-Driving suite represents a potentially transformative advancement that could reshape the company’s competitive positioning.
Yet the conservative wealth firm sees opportunity where others see risk. Analyst price targets range from $600 to $650 per share for 2025, suggesting potential 40% upside from current levels. Some analysts remain “pound-the-table bullish” on Tesla’s prospects, citing robotaxi services and Optimus robot development as groundbreaking catalysts that could justify premium valuations. Tesla’s reliability has shown significant improvement with a score of 209 problems per 100 vehicles in 2025, down from 252 in 2024.
The firm’s strategy reveals how professional investors manage Tesla’s volatility without abandoning exposure entirely. Rather than buying stock directly, they’re using specialized financial instruments. Debt-based exchange-traded products allow tactical positioning aligned with portfolio risk tolerances. These tools enable exposure to Tesla’s potential upside while managing downside risks more carefully.
The long-term vision supporting this bet centers on Tesla’s shift from an automaker into an artificial intelligence company. Robotaxi services could eventually dwarf vehicle manufacturing profits. New affordable Model Y and Model 3 variants offer near-term sales momentum. Autonomous driving technology development, though delayed from original timelines, remains a critical component.
This bet represents a calculated wager on Tesla’s ability to execute its ambitious vision. It’s not a bet on current fundamentals but on future possibilities. For conservative investors, the position-sizing approach through specialized instruments offers a balanced way to participate in potential gains while respecting portfolio constraints. The outcome ultimately depends on whether Tesla can reshape its business beyond traditional vehicle manufacturing.