TSLA Stock Today: January 29 Pivot to AI as S/X Ends, Revenue Falls
Tesla stock is in focus after the company reported its first-ever annual revenue decline and said it will discontinue Model S and X while shifting resources to AI and robotics. The plan includes a $2bn investment in xAI and scaling Optimus robots in California. Shares ticked up after hours as investors weighed long-term AI upside against higher capex and softer auto demand. For Australians, TSLA trades in USD, so FX and US market hours add another layer to returns and risk.
What the January 29 update means for investors
Tesla reported its first annual revenue drop and will discontinue Model S and X, redirecting capital and talent to AI initiatives. The move underscores pressure on margins and demand but signals a bet on software and robotics optionality. Execution speed and proof points will matter most for the next leg. See coverage for context from Al Jazeera.
Management flagged a $2bn xAI investment and Optimus robot production in California. These projects are capital intensive and may take time to contribute revenue. Investors will look for milestones like pilot deployments, paying AI products, and cost-down curves. Read more on the strategic shift from BBC.
Tesla earnings and valuation check
At recent levels, Tesla stock screens as growth-heavy: market cap about $1.43T, P/E near 226, price-to-sales around 15, and net margin roughly 5.5%. Leverage is modest, with debt-to-equity near 0.17 and current ratio about 2.0. Capex intensity has been rising, which supports AI and factory plans but dampens near-term free cash flow.
Analysts are split: 34 Buy, 15 Hold, 15 Sell. One composite model rates the shares B- with a Sell tilt. House forecasts point to $335.77 (1M) and $379.68 (1Y), suggesting tempered expectations. Bull cases lean on AI monetisation; bear cases focus on execution risk, auto demand, and stock-based compensation and pay-plan debates.
Technical view after the update
Tesla stock shows mixed momentum: RSI 47 signals neutrality, MACD is negative, and ADX near 22 points to a non-trending tape. Bollinger middle sits around 462 with the lower band near 423, while Stochastics around 16 hint at short-term oversold risk. ATR near 16.6 implies wide daily swings; position sizing matters.
Recent intraday levels cluster around 430–438, with the 50-day average near 442 as first resistance. The 200-day near 375 is the bigger support zone. Money Flow Index at 23 reflects weak inflows, so sustained closes above the 50-day would help shift momentum. Below the lower band, watch for potential mean reversion bids.
What this means for Australian investors
TSLA trades in USD on US exchanges, so AUD/USD moves can amplify or offset returns. Consider brokerage FX spreads and the impact of US earnings releases hitting morning AEDT. Many Australians gain exposure via US-focused ETFs or direct US brokerage accounts; check fees, liquidity, and tax considerations before allocating capital.
Treat Tesla stock as a high-beta growth name with AI optionality. Use clear sizing rules, staggered entries, and time-based reviews tied to milestones like Optimus pilots or paid AI features. If fundamentals deliver, add on strength; if progress slips or margins compress, step back and reassess the thesis.
Final Thoughts
Tesla stock now trades on its AI story as much as autos. Tesla is ending S and X, funding a $2bn xAI stake, and scaling Optimus robots. That can build new revenue streams, but it demands heavy capex and raises execution risk. For near term, watch margin trends, free cash flow, and concrete AI milestones. On the tape, a break above the 50-day average would improve momentum, while the 200-day remains key support. Australian investors should factor in AUD/USD, US trading hours, and costs. Keep positions sized for volatility, set review checkpoints, and let evidence guide adds or trims.
FAQs
Why did Tesla stock move after-hours on January 29?
Investors reacted to the first annual revenue decline, plans to discontinue S and X, and a pivot toward AI and robotics. The long-term upside from xAI and Optimus offset near-term concerns about capex and demand. That mix led to a modest after-hours lift as the market reassessed risk and reward.
What is in Tesla’s AI plan, and how might it make money?
The plan includes a $2bn investment in xAI and scaling Optimus robots in California. Monetisation could come from paid AI software, enterprise services, and robotics deployments that reduce labour costs. Investors will watch for pilot wins, commercial contracts, and margin contribution over time, not just demos.
Is Tesla stock overvalued after this update?
Valuation is rich versus autos, with a high P/E and price-to-sales. Bulls think AI and software can grow into the multiple. Bears point to execution risk and rising capex. A sensible approach is phased entries, tracking margins and AI milestones before increasing exposure, and using predefined risk limits.
How should Australians invest in TSLA given currency risk?
TSLA trades in USD, so AUD/USD moves can add or subtract from returns. You can hedge with certain brokers or accept FX exposure and size accordingly. Check fees, liquidity, and tax settings, and consider gradual buying to smooth currency swings across time.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
