The Future of Artificial Intelligence: 10 Predictions for 10 Industries

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3. Tesla Inc. (NASDAQ:TSLA) – Automotive Industry

Number of Hedge Fund Holders: 115

Earlier this year, Ronald Baron, the billionaire founder of Baron Capital, appeared on news platform CNBC and claimed that Tesla Inc. (NASDAQ:TSLA), an automotive and clean energy company, would reach $5 trillion in valuation within the next decade. He added that he believed Tesla CEO Elon Musk had even more ambitious goals in mind and wanted to make the automaker a $30 trillion company. Baron, a long-term investor in the automaker, has been consistently bullish on the autonomous driving and robotaxi initiatives of Tesla. Tesla CEO Elon Musk has also been vocal about his ambitions to integrate self-driving software into Tesla vehicles for years. Right now, Tesla owners can choose to subscribe to Full Self-Driving (FSD) in certain geographic regions only.

Tesla Inc. (NASDAQ:TSLA) remains a trend-setter in the automotive AI space. An analyst at Morgan Stanley has an Overweight rating on the stock with $410 price target. In a recent investor note, the analyst said Tesla Q3 deliveries of about 497,000 beat the sell-side consensus expectation of 443,000 by 12% and came in at the high end of the buy side expectation range of 450,000-500,000. The strong Q3 delivery beat was likely driven by a demand pull-forward ahead of the expiry of EV consumer tax credits and marked the first year-over-year increase in deliveries this year, per the investor note by the analyst.

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