Melius Initiates Tesla (TSLA) With Buy and $520 Target, Calls It a “Must Own” AI Stock

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks in Focus on Wall Street. On October 13, Melius initiated coverage of the stock with a “Buy” rating and a $520 price target. The firm calls Tesla a “must own” as it is poised to capitalize on AI disruption impacting multiple industries, starting with automotive.

“Tesla is unique in its ability to deliver on this potential. Access to compute and ability to manage it have become a new differentiator in a world where rising computing power accelerates the pace of change.”

Melius highlighted how Tesla’s computing power management, along with the combination of technology expertise and manufacturing capabilities, is currently unmatched by competitors.

Asif Islam / Shutterstock.com

Moreover, the company’s connection to the “Musk ecosystem,” including xAI, offers benefits that allow for the delivery of new data centers at a very fast pace. Meanwhile, its manufacturing strategy allows rapid iteration and vertical integration.

Melius believes that the company’s ability to “rapidly improve and scale autonomy in driving” is the “first major manifestation of AI in the physical world” and that major changes are going to follow.

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

READ NEXT: 10 AI Stocks Every Investor Should Watch and 10 Trending AI Stocks on Wall Street

Disclosure: None.