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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.

Hadrian / Shutterstock.com

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.

READ NEXT: 10 AI Stocks in Focus on Wall Street and 10 Hot AI Stocks to Keep on Your Radar

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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