10 Must-Watch AI Stocks Dominating Headlines

7. 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 6^th, Wolfe reiterated the stock as “Peer Perform”, stating that Robotaxi is the key to Tesla’s business. However, it sees too many challenges for now. While the firm is cautious about Tesla’s near-term performance, it believes robotaxi performance will be a key driver for the stock this year. Its Q1 outlook appears difficult due to “seasonality and planned MY downtime,” and there is also uncertainty around Tesla’s upcoming affordable vehicle lineup. Despite visibility being low, analysts believe “margins could improve quickly”. The firm also noted that Tesla could be weighed down by regulatory risks. Nevertheless, the firm remains focused on Tesla’s autonomy efforts.

 “As it relates to stock, we remain on the sidelines, as we continue to view TSLA’s planned Robotaxi launch in June as the most important near-term catalyst. We fully expect Tesla to launch a rideshare service in Austin, as planned. Afterwards, we’d expect the market to start honing in on a several key service metric.”