Shares of Tesla (TSLA) have shown resilience, trading around $397-$401.75 in recent sessions, as analysts highlight the company's strategic moves to secure its long-term growth. Stifel maintained a Buy rating with a $508 price target, citing strong fourth-quarter profitability with gross profit of $5.01 billion and margins reaching a two-year high of 20.1%.
Tesla's energy storage business is expanding through a major partnership. The company has signed a $4.3 billion agreement with LG Energy Solution to build a lithium iron phosphate (LFP) battery cell manufacturing facility in Lansing, Michigan. Production is expected to begin in 2027, with the domestically produced cells powering Tesla's Megapack 3 systems manufactured in Texas.
The most significant near-term development is the confirmation of Tesla's "Terafab" chip factory launch. CEO Elon Musk announced the facility will officially open on March 21, 2026, at the company's Austin Gigafactory. Musk identified chip production as the potential limiting factor for Tesla's growth within 3-4 years, driven by the scaling of its autonomous driving and Optimus humanoid robot ambitions.
Morgan Stanley analyst Andrew Percoco provided context, estimating that if Tesla hits its target of 100 million-plus Optimus robots per year, it would require over 200 million chips annually—more than 50 times Tesla's current demand. Percoco estimates the fab could cost $35-$40 billion, with chips not expected until 2028. He cited geopolitical supply chain risks as a key motivator for building domestic capacity.
Meanwhile, Tesla continues to expand its robotaxi service, currently active in San Francisco and Austin, with plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of 2026. However, competition is intensifying, with Nvidia's DRIVE platform being adopted by automakers like BYD, Hyundai, and Nissan, and Uber planning to deploy Nvidia-enabled robotaxis across 28 markets by 2028.
