Is Tesla (TSLA) the Best Quality Stock to Buy and Hold for the Next 5 Years?
May 9, 2026
Tesla, Inc. (NASDAQ:TSLA) is one of the
10 Best Quality Stocks to Buy and Hold for the Next 5 Years.
On May 6, 2026, Tesla, Inc. (NASDAQ:TSLA) recalled 218,868 vehicles in the United States due to delayed rearview camera images that could increase crash risk, according to the National Highway Traffic Safety Administration. The agency said the rearview camera display in affected vehicles may be delayed when the vehicle is shifted into reverse, reducing driver visibility. The recall affects certain Model 3, Model Y, Model S, and Model X vehicles.
Last month, Roth Capital maintained a Buy rating and $505 price target on Tesla, Inc. (NASDAQ:TSLA) following the company’s Q1 results. The firm noted that Tesla increased its capital expenditure guidance for growth investments by $5B to $25B, which it believes refocuses investor attention on initiatives such as TeraFab. Roth added that while Robotaxi deployment may be progressing somewhat slower than expected, that likely reflects the company’s safety protocols.
RBC Capital lowered its price target on Tesla, Inc. (NASDAQ:TSLA) to $475 from $480 while maintaining an Outperform rating. The firm said Tesla’s Q1 gross margins remained healthy even excluding one-time warranty benefits and tariffs. RBC also pointed to 51% year-over-year growth in FSD subscriptions, expected approvals in Europe and China over Q2 and Q3, and planned robotaxi expansion into Dallas and Houston, with about a dozen states targeted by year-end.
On April 22, 2026, Tesla, Inc. (NASDAQ:TSLA) reported Q1 adjusted EPS of 41c, versus the 36c consensus estimate, while revenue came in at $22.39B compared to expectations of $22.35B. In its quarterly report, Tesla said it remains optimistic about 2026, citing continued progress in FSD, Robotaxi deployment, Optimus development ahead of mass production, and expanding energy production capacity. The company also said it remains focused on innovation across electrification, software, artificial intelligence, manufacturing, and supply chain resilience.
Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles and energy generation and storage systems globally.
While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
Disclosure: None. Follow Insider Monkey on Google News.
Search
RECENT PRESS RELEASES
Related Post
