Tesla has just received a price target boost from Wedbush Securities. The research firm has upgraded its base case price to $515 while boosting its bull case price target to $650, a 47.7% upside from here on.
Tesla Inc. is famous for sparking a revolution in the EV industry. While it was recently overtaken by China’s BYD as the world’s largest EV maker, the company continues to be a powerhouse in the EV industry. Its stock almost always trades at an expensive premium and for good reason. Being one of the first companies to launch Electric Vehicles and doing it successfully at scale, other companies are unlikely to catch up, which justifies the premium it trades at.
Tesla also sits on enormous amounts of data that it receives from Tesla cars driving around the globe every day. Thanks to the recent emergence of AI, people realize the importance of this data. If there is any company that can crack Full Self Driving, it is Tesla. No other company can generate similar amounts of data at the scale that Tesla does, which gives it a headstart that should ensure its lead in autonomous driving in the coming years.
Tesla’s revenue from EV sales is stabilizing but the company continues to be a growth play thanks to its AI initiatives. This growth is what’s exciting investors and analysts. Tesla launched its ‘Actually Smart Summon’ technology in China this Friday. The tech allows users to summon their vehicles to their GPS location, or any other point of their choosing. The vehicle uses Tesla Vision technology to then drive itself to the target area.
The feature is an improvement on the Smart Summon launched in 2019. Due to frequent errors, that version received a bad reputation. The Actually Smart Summon was promised in 2022 and even though it’s still not available in the US, a launch in China means the US launch can’t be far away. Since it is an FSD feature, it also means full autonomy is one step closer, hence all the excitement.
The main difference between Tesla’s Smart Summon and Actually Smart Summon is that the latter uses cameras instead of the ultrasonic sensors that Smart Summon utilizes. Tesla’s future plans include the first versions of its unsupervised FSD in California and Texas next year. Robotaxi is expected to come by 2026. The future is exciting for Tesla, no wonder the stock has nearly doubled in just over a month! Like Wedbush, we are also bullish on the stock.
Tesla ranks 23rd on our latest list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held TSLA at the end of the third quarter which was 85 in the previous quarter. While we acknowledge the potential of TSLA as a leading 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 as promising as 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 was originally published at Insider Monkey.
