Tesla Stock Remains Top Pick, Despite the AI Hype
Self-driving, or automation is different technology from generative AI!
In fact, Tesla’s stock’s direction will be dominated by the supply and demand of electric cars over the next 12 months, Morgan Stanley analyst Adam Jonas, who has had a buy-equivalent rating on the EV maker since November 2020, wrote in a note on Thursday.
Tweet on how Tesla bears got it wrong, again!
Betting against @tesla proved way too expensive this Year!!#Tesla #stocks #tech #ev pic.twitter.com/aHAV58UDyW
— The_Journalbiz (@the_journalbiz) June 2, 2023
Blomberg chart on Tesla and tech stocks
While the company’s shares have got a mild boost amid a rally fueled by some tech stocks over the past few weeks as investors clamored for anything related to generative AI, the gains are much more muted compared to that of Nvidia Corp., C3.ai Inc. or Marvell Technology Inc.
Though Tesla is developing several technologies that fall under the broader umbrella of AI — such as self-driving software and Optimus robot — autonomous driving and generative AI are two very different technologies, he added.
Still, AI or not, Tesla shares have risen significantly this year, gaining over 68%, eclipsing the Nasdaq 100 Index’s 32% advance and even surpassing NYSE FANG+ Index’s 64% jump.
