Tesla (TSLA) Seen Trading More Like a SpaceX Proxy as Merger Talk Grows

Tesla, Inc. (NASDAQ:TSLA) is one of the 15 AI Stocks Analysts Are Watching: Microsoft, Nvidia, and More.

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.

Tesla (TSLA) Seen Trading More Like a SpaceX Proxy as Merger Talk Grows

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.

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 the cheapest AI stock.

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