10 AI Stocks Dominating the News This Week

6. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

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 March 27, HSBC analyst Michael Tyndall reiterated the stock as “Reduce” and lowered his price target on the shares by $35 to $130. According to Tyndall, there are “no quick fixes.” Due to the company’s aging products with limited driving assistance technology, the company is being pressured in the China market.

“Tesla eschews many of the industry norms (holding list prices firm, making regular facelifts and model renewals) and has to date seen only minimal impact, but tougher competition and brand erosion is likely to see the impact of its strategy hurt more.”

The company’s Robotaxi opportunity is too far away in the future, he noted.

“Delays have been a constant theme at Tesla, whereas the competitive threats continue to grow. We see a longer and less certain timeline than the current valuation reflects.”