10 AI News Updates Investors Should Not Miss

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 99

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On February 2^nd, Bank of America analyst John Murphy maintained a “Neutral” rating on the stock with a $490 price target. According to the firm, it is best to remain cautious considering the many challenges ahead for the stock. Transitioning to the updated Model Y, which is Tesla’s electric SUV, will lead to weeks of lost production across all factories, ultimately impacting Q1 results in terms of revenue and gross margins. According to Murphy, this shift could result in a production loss of 100,000 vehicles. With Tesla prioritizing volume growth, there will be sustained pressure on gross margins as well. The analyst has also deemed the discussion surrounding Optimus as a distraction. It said that while the humanoid robot holds “meaningful long-term potential,” the current contribution to Tesla’s valuation remains small. Moreover, since Tesla relies on imported parts, tariffs could further reduce profitability.