Melius Reiterates Tesla (TSLA) as a ‘Must Own’ as FSD v14 Signals a Major Shift

Tesla, Inc. (NASDAQ:TSLA) is one of the Hot AI Stocks to Keep on Your Radar. On November 24, Melius reiterated the stock as “Buy,” with analyst Rob Wertheimer noting how the firm has recently deemed Tesla as a “must own” because “the world is about to change, dramatically.” The firm believes that Tesla remains a step ahead of peers.

“Autonomy is coming very soon, and it will change everything about the driving ecosystem … We believe the next five years will see hundreds of billions in value shift, from a collection of soon to be struggling or even obsolete companies, to Tesla.”

– Melius analyst Rob Wertheimer

The firm noted how Tesla’s spark recently is its latest iteration of full self-driving (FSD) software, version 14.1.7. The transition to a vision-only system, in combination with immense amounts of compute to train the system, has made it much better.

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Earlier, Piper Sandler also came away impressed with Tesla’s FSD v14 following a flawless robo taxi test. Deeming it as a “truly impressive product”, the firm noted how investors should try the FSD v14, and that it drives better than the average American.

Wertheimer from Melius believes that other legacy automakers are unable to compete with Tesla on an innovation and cost perspective.

“Over the past decade and even up to a year or two ago, we assumed others could catch up quickly, making for a short duration moat, even if Tesla got there first,” he said. “Now we are not quite so sure, as strategic choices made years ago seem to be working well for Tesla and less so for others.”

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

While we acknowledge the risk and potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.