Morgan Stanley analyst Adam Jonas highlights the transformative impact of artificial intelligence (AI) on the manufacturing economy, emphasizing its significance for Tesla (TSLA, Financial). Jonas likens the AI evolution to a "Cambrian explosion," a period of rapid species evolution 500 million years ago. This analogy underscores AI's potential to drive substantial changes in global manufacturing.
In the initial phase, AI has focused on text-based learning, exemplified by tools like ChatGPT. However, the next generation of AI technology is leveraging visual data for autonomous vehicles, robots, and drones, with companies like Tesla, Alphabet's Waymo, and Nvidia (NVDA) leading the charge. Jonas points out Tesla's advantage in capital and visual data, positioning it to capitalize on AI's expansion into tangible domains.
While Jonas's report serves more as a conceptual exploration than a financial forecast, he encourages investors to engage with these technologies firsthand. He stresses the importance of experiencing Tesla's full self-driving software or Waymo's autonomous taxis, as these technologies are integral to Tesla's perception as a key AI investment.
Jonas maintains a positive outlook on Tesla, assigning a "buy" rating with a target price of $430, attributing approximately $260 to AI-driven autonomous technologies. Tesla plans to commence mass production of humanoid robots by 2026. Despite Tesla's promising prospects, its stock fell 2.1% to $415.11, contrasting with the S&P 500 and Dow Jones Industrial Average's gains.
Wedbush analyst Dan Ives raised Tesla's target price from $515 to $550, maintaining a "buy" rating, emphasizing the burgeoning era of autonomous driving and Tesla's humanoid robot, Optimus. Tesla's stock has risen about 5% this year, with a significant 69% increase since the presidential election and a 78% gain post-Tesla's autonomous taxi event. Analysts' average target price for Tesla is $339, with 46% recommending a "buy."
