Tesla stocks rose after the decline.

Tesla (TSLA) shares started low on Friday morning but showed an increase after the sharp losses from the previous day. The broader market is showing signs of recovery following yesterday's sell-offs. However, despite this move, Tesla shares have lost about 9% in value since CEO Elon Musk received a $1 trillion payment package.

With today's movement, Tesla shares have declined by 7% on a weekly basis, falling well below the psychologically significant $400 support level. During yesterday's session, the stock plummeted to its lowest level since September.

Among the factors putting pressure on Tesla is the reduced likelihood of an interest rate cut in December. This situation affects riskier assets like Big Tech. Additionally, concerns regarding artificial intelligence spending are triggering a flight towards less valued sectors.

Tesla investors find hope in the promise of a near future shaped by artificial intelligence and autonomous technology. One of the recent evaluators on this topic is Adam Jonas from Morgan Stanley. Jonas predicts that by 2026, in “very early” robot predictions, Tesla will remove safety drivers from robotaxi tests in Texas and at least one other U.S. state where it has promised expansion. “2026 will be the year that robotaxis transition from science fiction to reality for consumers and investors,” he stated.

Recently, during Tesla’s shareholder meeting, Musk announced that safety drivers would be removed from the robotaxi services in Austin by the end of the year. It was also noted that Miami, Dallas, Phoenix, and Las Vegas would be the next cities to test Tesla’s robotaxi service.

Jonas expects a closer relationship between Tesla and Musk’s xAI. This, in particular, will assist Tesla in enhancing the production of Optimus robots. “A Tesla robot factory will be the 'hub' for next-generation robots. I believe the expanding capabilities of xAI’s computation and 'real seeker' artificial intelligence will become more evident over time,” he commented.

Tesla announced at the shareholder meeting that it will establish a production line for Optimus with a capacity of 1 million units at its Fremont, California factory, and eventually open a line with a capacity of 10 million units at its Giga facility in Austin, Texas. Currently, Optimus is in the pilot production phase in Fremont.

Jonas has a 'Weighted' rating for Tesla and sets his short-term price target at $410. The 'bull scenario,' however, is projected at $800.

Yesterday, Dan Ives from Wedbush added that the automaker's artificial intelligence future is an area that should capture investors' interest. “In my view, this will be the most important chapter to be written in Tesla’s story so far,” he commented.

Ives regarded Musk’s payment package as a 'green light' for Tesla’s artificial intelligence and autonomous technology plans and rated the stock as Outperform. His price target is $600.