10 Buzzing AI Stocks on Latest News and Ratings

2. 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 January 7th, analyst John Murphy from Bank of America downgraded Tesla to Neutral from Buy but raised his price target to $490 from $400.

“Execution risk is high, and TSLA is trading at a level that captures much of our base case [long-term] potential from core autos, robotaxi, Optimus, and energy generation & storage. There are catalysts ahead, which could support the stock. However, execution risk is high. These include: 1) Introduction of a low cost model in [first half of 2025] and another new model in [second half of 2025] (key drivers of volume growth); 2) Launch of robotaxi in mid-2025; 3) Megapack production ramp at Shanghai assembly plant starting in 1Q:25; 4) Updates on [full self-driving] subscribers”.

– John Murphy

The downgrade in rating reflects the firm’s concerns regarding execution risks tied to Tesla’s plans, which include unveiling a low-cost EV model, launching robotaxis, scaling Megapack battery production, and increasing user adoption for its Full Self-Driving vehicles. Tesla’s advanced technologies, including its Full Self-Driving system and Optimus humanoid robots, leverage artificial intelligence for driving autonomously, automating tasks, and more. However, these AI-driven technologies carry huge execution risks. Some more risks discussed by the analyst included product launch delays, slower EV demand, competition, and changes in government policies.