We recently published a list of 10 AI Stocks Analysts Are Watching: Latest Ratings and News. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other AI stocks analysts are watching.
A consortium of investors led by Elon Musk recently offered $97.4 billion to buy the non-profit that controls OpenAI. Musk’s lawyer, Marc Toberoff, confirmed the news. He told Reuters that the offer was sent by email on Monday to OpenAI’s outside counsel at Wachtell, Lipton, Rosen & Katz. However, OpenAI has said that it has not yet received a formal bid from the Elon Musk-led consortium.
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According to Toberoff, the bid was in the form of a “detailed four-page Letter of Intent” to purchase OpenAI’s assets. It was signed by Musk and other investors and addressed to the board. Nevertheless, the news of not having received the bid adds confusion over Musk’s attempt to take control of the artificial startup that has seemingly started the AI arms race.
“Whether Sam Altman chose to provide or withhold this from OpenAI’s other Board members is outside of our control”
-Toberoff, referring to OpenAI’s CEO.
Whether or not an official bid has been sent to OpenAI from Musk, one thing remains clear. Sam Altman, CEO of OpenAI, is not interested in the offer. Altman told Reuters that the non-profit that controls OpenAI is not for sale. He also posted on X, counter-questioning if Musk wanted to sell Twitter for $9.74 billion instead.
“I have nothing to say. I mean, it’s ridiculous. The company is not for sale. It’s another one of his tactics to try to mess with us”.
-Altman said (on the sidelines) of an AI summit in Paris when asked about the offer.
Reuters also reported that Altman sent an internal message to OpenAI employees stating that the board, even though it had not officially reviewed the offer, would reject it based on the interest of OpenAI.
OpenAI is currently seeking a transition into a for-profit from a nonprofit entity. The company states that the transition is required to secure the capital needed for developing the best AI models. Musk, however, appears to have made the move to prevent this outcome. According to him, OpenAI’s transition to a for-profit entity would steer it away from its original mission of developing open-source, safety-focused AI that benefits humanity.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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. One of the biggest analyst calls on Wednesday, February 12, was for Tesla. Morgan Stanley reiterated the stock as “Overweight” and kept its $430 price target, noting that Tesla is a key player in US manufacturing. The firm advises investors to buy the dip in Tesla and that it’s well positioned for US manufacturing, particularly as artificial intelligence (AI) increasingly integrates into physical production. Tesla is “one of the most diversified expressions of physical AI”, noted the firm, and the company stands at the center of the transformation from a knowledge economy to a physical economy.
“We believe Tesla is well positioned in the metamorphosis of US manufacturing in the AI era. Data is defining the software.”
Overall, TSLA ranks 5th on our list of AI stocks analysts are watching. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
