Why TSLA Is Climbing Today

Tesla (TSLA) is advancing 3% after investment bank Benchmark started coverage of the automaker with a Buy rating.

Why Benchmark Is Bullish on TSLA

Benchmark predicts that Elon Musk’s firm will get a big boost from its release of cheaper EVs later this year. And likely to fuel TSLA’s growth in the future are its launch of a robotaxi service in Austin, scheduled to take place in June, and the increased production of its Optimus robots in 2026, according to the investment bank.

Another Investment Bank Was Bearish on TSLA Yesterday

Investment bank Oppenheimer weighed in with cautious comments on TSLA yesterday. Citing the automaker’s stepped-up competition, Oppenheimer warned that the risk of  TSLA’s financial results coming in below analysts’ average estimates is increasing. Additionally, the investment bank believes that Musk’s “public life risks alienating consumers and employees as the Trump administration tests the limits of its power.” Finally, Oppenheimer noted that the demand for TSLA’s EVs in a number of its key markets weakened last quarter.

The investment bank reduced its estimates for the automaker and kept a Perform rating on TSLA.

The Recent Performance of TSLA

In the last month, the shares have tumbled 21%, while they have risen 2.5% in the last three months.

While we acknowledge the potential of TSLA, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.