The analyst also noted in a CNBC interview that Tesla owners paying the additional $8,000 upgrade for existing vehicles to adopt FSD would result in a big boost in profit margin. That would help provide a return on the huge amount of capital Tesla spends on artificial intelligence (AI) infrastructure to develop FSD.

The shares dropped more than 6% to start a new year of trading after the company reported weaker-than-expected fourth-quarter deliveries.

Stocks rose Friday after Wall Street kicked off the first trading day of the new year with a loss in a volatile session.These stocks were making moves:Tesla shares were up 5.8% after the electric-vehicle maker tumbled 6.

Key Takeaways U.S. equities were higher at midday, bouncing back from yesterday's selloff on optimism about growing demand for nuclear power and Tesla's recovery from its dip.The need for more and more electricity for artificial intelligence data centers drove up shares of Vistra,