12 AI Stocks Making Waves on Wall Street Today

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6. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives. On May 20, Morgan Stanley reiterated the stock as “Overweight” with a price target of $410. The firm said the market may have been overly optimistic about Tesla’s automotive business, failing to account for competition, particularly from China. The firm highlighted Chinese electric vehicle (EV) manufacturers, particularly Xiaomi’s latest offerings in the EV market. It further noted how competition is going to influence international markets and is a key driving factor behind Tesla’s strategic focus on autonomy.

“We find market expectations around Tesla’s near-term automotive business remain too high and do not fully reflect the quantum of incremental capacity and competition coming out of China, ultimately having an impact in international markets.”

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