Wells Fargo Reiterates Underweight on Tesla (TSLA), Calls Shares Overvalued

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks Every Investor Should WatchOn October 10, Wells Fargo reiterated the stock as “Underweight,” stating that Tesla shares are overvalued.

“Remain UW; Too Much ‘Hype’ Baked In.”

In other news, US federal regulators opened yet another investigation into Tesla’s self-driving feature on October 9th. The investigation follows dozens of incidents in which Tesla cars ran red lights or drove on the wrong side of the road. Some of these crashed in other vehicles and also caused injuries.

Pixabay/Public Domain

44 separate incidents were reported where Tesla drivers using FSD said the system caused them to run a red light, run into incoming traffic, or face other traffic safety violations that led to collisions.

According to NHTSA, the investigation concerns “all Tesla vehicles that have been equipped with FSD (Supervised) or FSD (Beta).” This is an estimated 2,882,566 of the company’s electric cars.

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.