Calling the recent decline by Tesla (TSLA) stock “overdue,” Nixon Peabody analyst Daniel Kern said on Schwab TV today that the shares have an “‘I want to believe’ kind of valuation.” He indicated that he is not yet bullish on the shares.

Tesla stock has hit a rough patch in recent weeks, but top analysts still see big gains ahead for the EV maker's stock this year.

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.