10 AI Stocks in the Spotlight This Week

5. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 115

Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks in the Spotlight This Week. On October 29, Bank of America raised its price objective on the stock to $471 from $341 but maintained a Neutral rating. The firm believes that Tesla remains a clear leader in “physical AI” but warned that its valuation remains stretched.

According to firm analysts, the new price target is based a sum-of-the-parts (SOTP) valuation, assigning an estimated 45% of Tesla’s total value to its robotaxi business, 17% to Full Self Driving, 12% to core automotive, and 6% to energy generation and storage, and 19% to Optimus.

“We raise our PO to $471 from $341, still based on our sum-of-the-parts (SOTP) analysis. Recall that our valuation approach is based on a discounted cash flow (DCF) analysis built out until 2040. Overall, we find that TSLA’s core automotive business represents around 12% of the total value while robotaxi is 45%, FSD is 17%, Energy Generation & Storage is around 6% and Optimus is 19%. Our PO revision is driven by a lower cost of equity capital, better Robotaxi progress, and a higher valuation for Optimus to account for the potential entrance into international markets.”

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