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UBS’ Tesla (TSLA) Coverage is “Sad,” Says Jim Cramer

We recently published 9 Stocks Jim Cramer Talked About.  Tesla, Inc. (NASDAQ:TSLA) is one of the stocks Jim Cramer talked about recently.

Tesla, Inc. (NASDAQ:TSLA) came under the attention of investment bank UBS earlier this month after the bank reiterated a Sell rating on the shares and kept a $247 share price target. As part of its coverage, UBS pointed out that it now expects the firm to deliver 415,000 vehicles in the fourth quarter, which was down from an earlier estimate of 429,000 units. The bank added that previous trends indicate that Tesla, Inc. (NASDAQ:TSLA)’s shares react to beats or misses against consensus estimates as opposed to buy-side estimates. Cramer, who previously remarked that the firm can become an important player in the data center industry via its energy storage solutions, remarked that UBS incorrectly believes that Tesla, Inc. (NASDAQ:TSLA) is a car company:

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“The UBS piece is, it’s very tough and very sad for UBS. And I love UBS but, they’re viewing it as a car company and they have a sell on it. It’s not a car company. It changed when it was at 250. When Dan Ives, who sartorially is very challenged, but not challenged at all. When he did that like code red of his own code red about Tesla, 250. Boom, they switched. The narrative switched. People who think it’s a car company, are not understanding it, it’s a robot company. And now it’s an energy company. Because they’re going to figure out, I think that if anyone’s’s going to figure out the data center conundrum about energy, it’s going to be Musk. And self drive, looking good. So stop thinking of it, look at this piece, UBS, forecast 415,000 cars, fourth q deliveries, I mean, he’s still stuck. . .just stop calling it a car company. . .”

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: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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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

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  • 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.

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