15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More

7. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 123

On June 22, Jefferies reiterated the stock as hold and raised its price target to $375 per share from $350. The firm has cautioned that Tesla may begin trading more like a SpaceX proxy as merger speculation builds.

Tesla shares did not sell off ahead of the SPCX IPO or since. Consensus that a merger will be next and soon may turn TSLA into a tracker as shareholders try to minimize stake dilution.

They noted how a merger may change how investors view Tesla. Instead of focusing on Tesla’s main businesses, they may begin to treat TSLA as a way to gain exposure to SpaceX.

A day later, on June 23, Baird reiterated the stock as “Outperform” and said it’s sticking with Tesla and sees a SpaceX merger “sooner rather than later.”

With the deal now complete, we believe focus will shift to a potential merger between the two entities, and we see this as likely to happen sooner rather than later. Acknowledging uncertainty in the timing of a potential merger, we continue to be buyers of TSLA with company-specific catalysts ahead.

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