12 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 12 AI Stocks Making Waves on Wall Street. On July 9, RBC Capital analyst Tom Narayan raised the price target on the stock to $319.00 (from $307.00) while maintaining an “Outperform” rating. Despite mounting pressure, the firm believes that Tesla’s sell-off has gone too far.

“We believe there is strong demand for Tesla products even in the face of more EV competition. Tesla’s lead, profits, cash generation, and currency are a major advantage that helps it to fund growth.”

The firm said that despite negative sentiment toward US auto stocks, OEMs are facing tariff impacts in the second quarter. However, plans to deal with these costs will likely impact vehicle sales and car dealer inventories from the third quarter. This is largely because some buyers are purchasing early to avoid the expected 2025 tariffs.

“Q2 deliveries were inline with consensus but above buyside expectations. Deliveries across regions were resilient. The new affordable car coming in Q3 should help performance in Europe and China. Shares have sold off since the June 22 robotaxi launch in Austin. We expect positive commentary on this development on the Q2 call, which could be a catalyst for shares.”

It values Tesla’s core car business at 1x sales, giving premium weight to long-term plays such as Megapack energy storage systems, autonomous driving, and AI. Narayan also argued that the long-term picture for Tesla makes it worth holding the stock through this rough patch.

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