Tesla Just Got Called a “Must Own” Stock—Here’s Why

Key Points

• Tesla continues to hold its long-term uptrend despite some recent volatility.
• The team at Melius Research just called it a “must-own” stock heading into 2026. 
• Analysts remain split, but this call could prove pivotal for the bulls in the coming weeks. 

Shares of Tesla Inc. NASDAQ: TSLA were trading right around $415 on Nov. 24, extending a rebound off the rising support line that’s been in place since April.

Since April, TSLA stock has doubled—holding strong despite months of market turbulence.

Despite persistent scrutiny from bearish investors, Tesla’s uptrend remains intact.

This technical strength has been reinforced ahead of Thanksgiving week by a bullish endorsement from Melius Research.

The firm called Tesla a “must-own” stock, citing its advances in AI, Full Self-Driving (FSD), and chip development. It’s a bold call, especially after a stretch where the bears have been resurfacing, and it could easily reignite momentum into year-end if investors take it seriously. 

Technical Strength and an Improving Macro Backdrop

Tesla’s technical picture continues to attract bullish attention. The $390–$405 region has acted as a reliable support zone several times this month, attracting new buyers each time the stock dips below $405. 

The broader market is showing signs of stabilization after a wobbly few weeks. The benchmark S&P 500 index has climbed nearly 4% in just four sessions, driven by increasing confidence among investors that the AI trade is intact.

The “Must Own” Call From Melius

Given Tesla had been starting to test the lower end of its range, Melius Research’s call came at a good time. The firm argued that Tesla has become a “must-own” stock thanks to its leadership in AI and autonomy, both of which could soon translate into meaningful earnings growth.

The report highlighted Tesla’s advances in FSD and its in-house AI chip program as key catalysts that could reshape its valuation trajectory over the coming years.

As analyst Rob Wertheimer summed in a note to clients, "over the past decade and even up to a year or two ago, we assumed others could catch up quickly, making for a short-duration moat, even if Tesla got there first. Now we are not quite so sure, as strategic choices made years ago seem to be working well for Tesla and less so for others."

As far as analyst comments go, it doesn’t get a whole lot better than this.

And considering they came right after the Stifel Nicolaus team boosted their price target on Tesla shares to $508, investors have plenty of reasons to be excited right now. 

The Bear Case Isn’t Dead Yet

Even so, there are reasons for caution. Both HSBC and UBS Group have reiterated sell ratings in recent weeks, warning that Tesla’s valuation leaves little room for error. The stock trades on one of the highest multiples among large-cap tech stocks, and skeptics argue that earnings growth doesn’t justify the price.

Bears also highlight weakening demand in Europe and China, where EV registrations have been dropping sharply this year. With competitors accelerating EV rollouts and consumers showing fatigue, Tesla’s near-term growth story undoubtedly faces headwinds.

Still, these arguments aren’t new, and the market seems comfortable looking past them. Tesla’s steady technical base suggests that much of this risk is already priced in. For every bearish note about Tesla's valuation, there’s a bullish note highlighting its long-term transformational potential, something few rivals can claim.

What to Watch Into Year-End

Heading into Thanksgiving and the final stretch of 2025, the $390–$410 range remains the line in the sand for bulls. A push towards $460 could quickly gather momentum for a move toward last year’s all-time high around $490.

Investors should be watching closely for further updates from the company on FSD regulatory approvals, the “Cybercab” initiative, and progress in Tesla's AI chip manufacturing. Given how solid the macro backdrop is right now, Tesla remains well-positioned to continue trending up, and every call like the one from Melius just adds to the potential upside.