10 AI Stocks You Need to Watch: News & Ratings

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 19, Baird kept an “Outperform” rating and a $370 price target on the stock. After hosting investors for a tour of Tesla’s battery manufacturing line at the Texas gigafactory and a meeting with the IR team, the firm is more certain of its near-term bearish outlook and long-term positive view.

On that note, the firm maintains its “bearish fresh pick” designation on Tesla shares. It has deemed that the Model Y retool is “a big task,” lowering delivery estimates for both Q1 and Q2 and adjusting the firm’s full-year delivery mix to mirror the impacts of downtime for the Model Y Launch series.

“Regardless of the root cause, we believe fears regarding Musk’s impact on the Tesla brand happening alongside the re-ramp of Model Y production will fuel bear arguments regarding demand which creates a near-term overhang.”

Beyond this near-term outlook, the firm has identified several potential catalysts for Tesla through the end of 2025.

“In the long term, we view TSLA as a core holding and are positive on its AI strategy/ capabilities, Optimus/robotics, Dojo compute, manufacturing leadership, and the Energy business among others.”