Tesla (TSLA)'s AI Future in Focus as Analysts Debate Stock Outlook
We recently published a list of . In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other AI stocks that are on Wall Street's radar today.
According to a new L.E.K. Consulting report, investor sentiment today heavily ties a company's enterprise value to how well they develop and execute their artificial intelligence (AI) strategies for growth. The report reveals that a company that executes its AI transformation well can expect a valuation gain of up to 19%.
On the contrary, a poor, or poorly executed, AI transformation can lead to a 9% loss of value. This is according to an L.E.K. analysis based on S&P 500 profit and loss data and results of an L.E.K. survey of executives. It is to be noted that the 28% change is the average shift in a company's value due to its use of AI, while the impact could be even bigger for some.
READ ALSO: and
'The old ways of delivering on strategy and innovation will no longer satisfy investor expectations because AI advancements have raised the bar on what's possible. AI strategies require targeted investment and careful implementation. Doing it right will lead to growth. But if a company swings and misses with AI, fails to swing enough or swings too much — or not at all — the value destruction could be significant.'
The key, however, lies in implementing a framework with which companies can bridge the AI gap toward success. They can do this by creating and implementing an AI transformation strategy that builds value.
'Winning companies will strategically deploy AI across all potential value-creation levers. In our experience, too many companies are just focusing on AI's potential related to productivity gains. To maximize upside potential — and ultimately avoid value erosion — leaders must plan and execute AI holistically so the strategy encompasses performance, competition and unique opportunities.'
According to the report, companies must discover their true differentiators and use AI to augment them further. For instance, Shopify used AI-powered features to enhance the product exploration experience for merchants and customers. As a result, the company saw a 15% jump in sales.
Likewise, AI can help companies find new revenue streams by synthesizing data to create new insights, develop new business models to monetize data and even lead to unique opportunities.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
Copyright: wolandmaster / 123RF Stock PhotoTesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. Tesla stock faces a rough Monday, March 10, as UBS analysts revised their outlook, lowering the price target from $259.00 to $225.00 while retaining a 'Sell' rating.
The price target revision follows Tesla's disappointing Q4 results, compelling UBS to reduce its Q1 2025 delivery forecast to 367,000 vehicles from an earlier estimate of 437,000. The firm stated that the current run-rate appears slower, but a potential surge in deliveries toward the end of the quarter could appear from increased promotional efforts.
Moreover, the UBS Evidence Lab has collected data signifying that delivery times for Tesla's Model 3 and Model Y are notably low, with vehicles generally available within two weeks in key markets, reflecting on softer demand for Tesla products.
On the same day, Morgan Stanley kept an 'Overweight' rating on the stock with a $430 price target. The analyst told investors in a research note that the stock is down from its December highs, and that this pullback is a buying opportunity for the 'embodied AI compounder'.
Overall, TSLA ranks 6th on our list of AI stocks that are on Wall Street's radar today. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Homewi$e: How student loans affect homeowners, potential buyers?
DES MOINES, Iowa — On this week's episode of Homewi$e Amanda Krenz and mortgage expert Tyler Osby discuss how student loan repayment can affect potential homebuyers and current homeowners. Past Episodes: Homewi$e: How student loans affect homeowners, potential buyers? Homewi$e: What you need to know about closing on a home Homewi$e: Who pays the realtors? Homewi$e: Credit check can trigger series of events, what to know Homewi$e: What is a gift of equity, what can it do for you? Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
42 minutes ago
- Yahoo
China's AI lab unveils RoboBrain 2.0 model to accelerate humanoid robot development
In a move that will further assert China's bid to scale robotics industry, the Beijing Academy of Artificial Intelligence (BAAI)—a not for profit research laboratory—unveiled last week a series of new open-source artificial intelligence (AI) models, dubbed RoboBrain 2.0, that will function as the 'brain' of robots. According to BAAI head Wang Zhongyuan, the use of powerful AI models in China's booming robotics market could accelerate the development and adoption of humanoids, as the sector works to overcome key challenges such as limited model capabilities and a lack of high-quality training data. Wang further explained that BAAI is actively seeking collaboration across the embodied intelligence industry, emphasizing the importance of joint efforts to accelerate progress. He noted that the institute is working with more than 20 leading companies in the sector and is looking to expand its network of partners to drive continued growth. Unveiled as part of China's broader push to advance intelligent machines, RoboBrain 2.0 was described by Wang as the world's most powerful open-source AI model designed to enhance a wide range of robots, including humanoids. Its debut positions BAAI as a potential key player in the evolving sector, the South China Morning Post reported. Furthermore, RoboBrain 2.0 introduces major improvements in spatial intelligence and task planning, delivering a 17% boost in speed and a 74% increase in accuracy compared to the previous version launched just three months earlier. With enhanced spatial intelligence, robots can now perceive distances from surrounding objects more precisely, while advanced task planning enables them to autonomously deconstruct complex activities into manageable steps, significantly improving overall performance. The RoboBrain model is part of the Wujie series, which also includes RoboOS 2.0—a cloud platform for deploying robotics AI models—and Emu3, a multimodal system capable of interpreting and generating text, images, and video. BAAI is one of China's early developers of open-source large language models, the technology behind generative AI chatbots. Several former employees have used their experience at BAAI to start their own AI companies, helping to grow the AI startup community in China. China's push to lead in robotics AI involves multiple players, with BAAI joined by the Beijing Humanoid Robot Innovation Centre, which earlier this year launched Hui Si Kai Wu—a general-purpose embodied AI platform. The center is also known for developing the Tien Kung humanoid robot, which made headlines after completing a half-marathon in Beijing in April. The Chinese institution aims to have its platform become the "Android of humanoid robots," serving as a standard operating system much like Google's Android does in the smartphone industry. Moreover, this year's edition of the BAAI Conference attracted over 100 AI researchers from around the world and more than 200 industry experts, including leaders from major Chinese tech companies such as Baidu, Huawei Technologies, and Tencent Holdings. Additionally, the Chinese academy also announced a strategic partnership with the Hong Kong Investment Corporation to collaborate on talent development, technology advancement, and capital investment aimed at fostering innovation and entrepreneurship in the country's AI sector.
CNBC
an hour ago
- CNBC
CCTV Script 06/06/25
The war of words between Elon Musk and Donald Trump, which seemed to escalate almost hourly, has already cost real money in the capital markets. Overnight, Musk's personal net worth reportedly fell by approximately $34 billion. By aligning the timing of their social media exchanges with Tesla's stock movements, a clear pattern emerges: as the feud grew more intense, with language becoming increasingly blunt and emotional, Tesla's share price continued to slide. Many analysts believe that Tesla's stock is likely to remain volatile. To assess its future trajectory, we can start with the trigger of this conflict: a recently passed House spending bill. One provision would eliminate tax credits for electric vehicles—directly impacting Tesla. JPMorgan analysts estimate that the new legislation could cut Tesla's annual profits by around $1.2 billion. However, some market observers note that both Musk and others in the industry had long anticipated that the Trump administration would eventually scrap EV subsidies. This expectation has been priced in—it was only a matter of timing. But of even greater consequence is the second layer of impact: the broader regulatory posture of the White House toward Musk, particularly in the autonomous driving space. Timing is critical. Next week, Tesla is expected to debut its long-awaited Robotaxi service in Austin, Texas. Progress in self-driving technology has been a key reason many investors remain bullish on Tesla. But the breakdown in Musk's relationship with Trump could undermine those expectations. "there's a view that the battle here going on between musk and Trump, that this is going to continue to sort of, you know, increase, and with that, ultimately does is that autonomous and the regulatory vision does Trump now, now not start to play nice in the sandbox with musk.""Elon Musk, as brilliant as he can be, can also be mercurial and impetuous. CUT TO from a trading perspective, I think the stock could easily trade down into the 250s 260s until you get some support." Beyond the personal feud, the spotlight is also shifting to the broader relationship between Silicon Valley—the U.S. tech hub—and Washington, D.C.—the political center. As Musk and Trump move from allies to adversaries, their split is drawing attention to the evolving dynamic between big tech and federal power. Analysts told CNBC that during Trump's first term, major tech firms often found themselves in the administration's crosshairs. Companies like Meta, Google, and to some extent Apple were all named in antitrust inquiries. Now, the rift between Musk and Trump may open new doors for tech leaders who have had tense relations with Musk. For instance, Jeff Bezos—who also leads a space company—has in recent months made efforts to court Trump more closely, reportedly taking cues from Musk's political playbook. This shift may also present an opportunity for Sam Altman, CEO of AI startup OpenAI. "If you're a startup that's trying to make big names or big headlines with investments for the US, that's probably a good place to be." Still, some analysts caution that this overnight drama may not deserve too much attention. A defining feature of the Trump-era policymaking process has always been its volatility—things can shift dramatically within just a few hours. What ultimately matters is returning to the fundamentals and taking a long-term view of where the industry—and the economy—are heading.
