Tesla’s stock market is on shuffle mode, it’s down one day, up the next. This week, a prominent investor who just pressed the “buy” button has concluded it’s time to double up on Tesla shares. It seems like this is the catalyst that Tesla bulls have been hoping for.

Tesla received a new vote of confidence this week from a well-known investor Bill Baruch, president and founder of Blue Line Futures. Discussing with CNBC, Baruch mentioned he had recently added to his holding in Tesla, citing both strategic portfolio rebalancing and optimism about the technical setup on the stock. While recognizing his prior underexposure to Tesla, Baruch is now finding the company creating what he reffered to as “a little bit of a base”, a term frequently used by traders to characterize a possible bottom preceding a rebound.

His optimism is not unique. Baruch compared it to other EV giants such as China’s BYD, which saw substantial gains over the past few weeks, hinting at a sector-wide recovery on the horizon. If momentum continues, Tesla may be set for a turnaround in the latter half of 2025.

Tesla’s Cautious but Optimistic Outlook

In spite of Baruch’s positive sentiment, the fundamentals of Tesla are mixed. The analyst expectations are for near-term earnings reduction, with mean estimates showing the decline in EPS from $2.42 in 2024 to $1.91 in 2025. Nevertheless, the longer-term prospects look more optimistic, with expectations for the EPS recovery to $2.91 in 2026.

Tesla’s stock performance is reflective of that uncertainty. In the last month, the stock has been able to edge up by 1%, but in the last three months, it has declined by 27%. Volatility is still a characteristic defining the stock, and that is both an opportunity and a risk for investors looking for exposure to the EV industry.

Tesla’s Position against the AI Boom

Tesla has definitely been a long-term tale for some, others are looking to the explosive power of artificial intelligence instead. AI shares have attracted greater investor interest through their high-growth paths and industry changing influences. Interestingly enough, an AI stock entity has risen during the first months of 2025, even while more familiar industry names have endured losses of nearly 25%.

For those looking for sharper profits and faster returns, Tesla’s patient long game can seem dull compared to some AI plays. Indeed, some experts now see AI shares, particularly those that are trading at a multiple of their earnings potential, to have more short-term upside than Tesla. Although Bill Baruch’s return to Tesla may rekindle optimism in Tesla’s prospects, investors should consider the wider tech environment as well. With the EV industry still in its infancy and AI mapping out the future in real-time, the smart money might not only be following where the wheels go, but where the data goes.