Tesla Is Still an Auto Stock Despite the AI Hype, Analyst Says
- Analyst sees share performance dominated by EV trends
- Says self-driving is different technology from generative AI
Cars at the Tesla factory in Fremont, California.
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A long-time Tesla Inc. bull poured water on investors’ hopes that the electric-vehicle maker’s shares can get a sizable lift from the artificial intelligence frenzy that has triggered a surge in some technology stocks.
While it is “tempting to speak in platitudes about Tesla’s AI chops,” the stock’s direction will be dominated by the supply and demand of electric cars over the next 12 months, Morgan Stanley analyst Adam Jonas, who has had a buy-equivalent rating on the EV maker since November 2020, wrote in a note on Thursday.