10 AI Stocks Analysts Are Watching Closely

5. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 115

Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks Analysts Are Watching Closely. On October 16, Exane BNP Paribas initiated the stock as “Underperform” and a price target of $307.00. The firm said it can’t justify the stock’s valuation.

Exane BNP Paribas’s valuation model incorporates Tesla’s artificial intelligence ventures, including Robotaxi and Optimus robot businesses. Even though these businesses currently generate no revenue, they are inflating Tesla’s valuation by accounting for an estimated 75% of their $1.02 trillion price target valuation.

Even with ambitious forecasts, Tesla’s risk/reward is unfavorable, it noted. Moreover, the 2026 cash flow is projected $4B below consensus, driven by margin and AI/software pressures.

“We are bullish on Tesla’s AI future, reflected in our quite generous base-case assumptions that see TSLA hitting over half of Elon’s 2035 $1trn comp package targets. But we still can’t justify the stock’s current valuation.”

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.