10 AI Stocks Making Waves on Wall Street

7. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 104

Tesla, Inc. (NASDAQ:TSLA) is one of the 10 AI Stocks Making Waves on Wall Street. On July 24, Morgan Stanley reiterated the stock as “Overweight” with a $410 price target. Morgan Stanley says Tesla remains a top pick following the company’s earnings report on Wednesday. The electric vehicle maker reported a top and bottom line miss on second-quarter results, with automotive revenue falling 16% year-on-year to $16.7 billion.

While Analyst Adam Jonas is a well-known Tesla bull, he has lowered his fiscal year 2025 earnings per share expectations by 14% as opposed to prior forecasts. Lower deliveries and higher operating expenses have caused this change.

“2Q numbers were a slight beat with FCF near break-even. Tesla is crossing the chasm to autonomy while absorbing slower volume, EV incentive elimination, tariffs and investing in new initiatives that may not make margins for years. Our OW rating and $410 price target are underpinned by our belief that Tesla’s capabilities in key areas of physical AI … offer growth and margin opportunities that greatly exceed those of the traditional EV business, which is under pressure,” he added. “we struggle to think of any other company as well positioned as Tesla in terms of data, robotics, energy, AI, manufacturing and supporting infrastructure”

-Jonas said in a note about Tesla’s results.

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