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Why TSLA Is Rising Today

Tesla (TSLA) is advancing 3% in early trading after the automaker reported weaker-than-expected fourth-quarter results but disclosed that it would launch an “unsupervised Full Self Driving” service by June.

Analysts’ views on TSLA were mixed in the wake of its results and comments, with Wedbush’s Dan Ives predicting that the automaker’s valuation would reach $2 trillion within 18 months.

A Look at Tesla’s Q4 Results

The company’s revenue came in at $25.7 billion, significantly lower than analysts’ average estimate of $27.15 billion. Moreover, it generated earnings per share of 73 cents compared with analysts’ mean outlook of 77 cents. Further, its income from operations tumbled to $1.58 billion in Q4 from $2.06 billion during the same period a year earlier.

Tesla’s Key Comments

CEO Elon Musk stated that unsupervised Full Self-Driving would kick off by June in Austin before being launched in other cities in the U.S.

The automaker reported that its deliveries in Greater China had reached record levels in Q4 and suggested that it would debut a new, relatively inexpensive EV in the first half of this year.

Analysts’ Reactions

Calling “autonomous/AI..90% of Tesla’s story,” Wedbush analyst Dan Ives predicts that the valuation of TSLA stock will reach $2 trillion within 18 months.

Seeing much more of a mixed picture was Bank of America. The bank is worried about the company’s Q1 sales volumes and its lower prices. However, Bank of America was pleased by the progress that  TSLA is making when it comes to robotaxis and its other new businesses.

While we acknowledge the potential of TSLA, 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

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

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:

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