10 AI Stocks Investors Are Watching Closely Right Now

5. 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 7, Wedbush reiterated the stock as “Outperform” with a $550 price target, adding the stock to its top picks list. The firm has reaffirmed that Tesla’s autonomous and AI-driven initiatives, including its Optimus robot program, could eventually contribute 90% of the company’s valuation. This may potentially push its market capitalization beyond $2 trillion.

“This is a gut check moment for the Tesla bulls (including ourselves) after this massive selloff in Tesla shares with fears mounting. The bears own the Tesla narrative in the near-term as lackluster sales numbers from Europe, China, and the US in January/ February along with Musk protests/brand worries have created many concerns.”

The firm estimates that less than 5% of Tesla’s global sales are at risk.

“We continue to believe the best thing that ever happened to Musk and Tesla was Trump in the White House as this will create a deregulatory environment with a federal autonomous roadmap central to the Tesla golden strategic vision.”