Tesla (TSLA) Draws Wall Street Spotlight Despite GLJ’s Persistent Sell Rating

Tesla (TSLA) has emerged as a focal point for Wall Street analysts and institutional investors in early 2026, with trading volume rising 38% over the past week compared to the 30-day average. Despite the heightened interest, GLJ continues to assign a sell rating to the stock, citing ongoing concerns about pricing pressure and slower-than-expected Model 2 production ramp-up. The firm’s stance underscores a growing divergence in analyst sentiment, with 12 of the 23 top-rated firms now assigning buy or overweight ratings to TSLA, up from just 5 in late 2025. The company reported Q4 2025 earnings on January 8, which exceeded expectations with $2.8 billion in net income, a 14% improvement year-over-year. Revenue reached $23.1 billion, driven by strong demand in the European and Chinese markets, where deliveries rose 22% and 18% respectively. However, adjusted EBITDA margins declined to 12.3%, down from 14.5% in Q3, signaling margin compression due to aggressive pricing in the Model 3 and Model Y segments. Investors are closely monitoring Tesla’s progress in deploying its next-generation 4680 battery cells and the launch of the Model 2, which is slated for late 2026. The company’s capital expenditure for 2026 is projected at $6.8 billion, with $2.3 billion allocated to battery production and AI-driven manufacturing automation. These investments reflect Tesla’s strategic pivot toward cost efficiency and vertical integration. The divergence in ratings has led to increased trading activity, with TSLA’s market capitalization rising to $924 billion as of January 10, marking its highest level since July 2024. Hedge funds increased their net long position by 17% in December, according to public filings. Meanwhile, GLJ’s sell rating continues to influence conservative investor positioning, particularly among funds that prioritize risk-adjusted returns over growth potential.