Ghazal Ahmed
2 min read
In This Article:
Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks Making Waves on Wall Street. On June 30, William Blair reiterated the stock as “Outperform,” stating that it is sticking with the stock but sees a “bumpy road ahead.”
The firm is encouraging investors to adopt a tactical view on the stock based on its autonomous driving and robotaxi business. It is bullish on the stock considering Tesla’s transformation from an automaker to an AI-driven mobility platform, a move which has the potential to open “up a new trillion-dollar total addressable market (TAM).”
“We fundamentally believe in Tesla’s long-term solution of neural nets and vision only, but acknowledge it opens up attack vectors for the inevitable hiccups to come.”
Pixabay/Public Domain
However, the firm has also acknowledged that the company’s core business is facing headwinds. This is why it has reduced its second-quarter delivery estimate to an estimated 355,000 units, below the consensus forecast of 385,000.
Some other risks Tesla has been facing include the cancellation of the Model 2 hatchback, lower sales in China and Europe, and intensifying competition from domestic rivals
“Our analysis reveals that Tesla’s valuation is increasingly dependent on the robotaxi business. … .We fundamentally believe in Tesla’s long-term solution of neural nets and vision only, but acknowledge it opens up attack vectors for the inevitable hiccups to come. We are encouraging investors to use bumps along the road tactically.”
While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 10 AI Stocks in the Spotlight and 10 AI Stocks Investors are Watching.
Disclosure: None.
