Tesla is the most undervalued AI name in the market: Wedbush

Investing.com -- Wedbush analysts reiterated their strong bullish stance on Tesla (NASDAQ:TSLA ) ahead of the company's much-anticipated "We, Robot" Robotaxi Day event, scheduled for tomorrow at 10 PM EST in Los Angeles. 

The firm expects the event to be a “historic moment” for CEO Elon Musk and Tesla, marking a significant turning point in the company’s journey toward autonomous driving and artificial intelligence (AI).

According to Wedbush, "We believe Robotaxi Day will be a seminal and historical day for Musk and Tesla, marking a new chapter of growth around autonomous, FSD, and AI." 

Wedbush believes Tesla is currently the “most undervalued AI name in the market,” anticipating the unveiling of "game-changing" autonomous technology during the event. 

The firm’s analysts expect Musk to provide critical updates on the anticipated Robotaxi, rumored to be named the “Cybercab,” along with Tesla’s Next-Gen Platform, Full Self-Driving (FSD) advancements, and the overall strategy for the rollout of Robotaxis within the next year.

Wedbush predicts Musk will address the near-term challenges faced by investors while also articulating the company's long-term vision. 

They state: "We firmly believe that Tesla remains a robotics/AI play in the future rather than just an EV vendor." 

Wedbush maintains an Outperform rating and price target of $300 on the company.

Furthermore, the firm notes that Tesla has logged over 1.5 billion miles in its FSD data centers, with the recent release of FSD version 12.5 showcasing significant improvements. They anticipate that version 13, expected by year-end, could deliver a sixfold enhancement in miles-per-intervention, further advancing Tesla’s autonomous capabilities.

As interest in Tesla’s humanoid robots, dubbed Optimus, continues to grow, Wedbush looks forward to updates on this front as well. 

They view this as a pivotal moment for Tesla, with the potential to “revolutionize urban transportation” through its years of research and development in Robotaxi technology.

With a clear focus on overcoming challenges such as insurance, vehicle costs, timing, regulatory approvals, and operational logistics, Wedbush concluded that it believes the AI and FSD segments represent a colossal $1 trillion value for Tesla in the coming years.

 

Source: Investing.com