Tesla (TSLA) Stock Gains Momentum as Elon Embraces 'Wartime CEO' Role

Tesla, Inc. (NASDAQ:TSLA) is one of the  AI Stocks in the Spotlight Right Now. On July 22, Wedbush analyst Daniel Ives reiterated an “Outperform” rating on the stock with a $500.00 price target. Investor sentiment has drastically shifted from what it was three months ago, with investors now viewing Elon as a “wartime CEO” with a focus on AI and autonomous driving. Updated model Y is thankfully leading to a recovery in China sales. Near-term challenges persist, but the firm is bullish on the stock backed by Tesla’s long-term AI ambitions.

“The set-up into Tesla earnings tomorrow after the bell is a dramatically different one than 3 months ago. While on the April earnings call the big focus was Musk officially leaving the Trump Administration and pressure to refocus on being CEO on Tesla….now investors are seeing more of a “wartime CEO” as Elon is laser focused on the Robotaxi expansion in Austin with more cities soon on the docket for this key autonomous initiative. Front and center for investors are the AI initiatives happening under the hood of Tesla with the Street listening carefully for any more direction around a Tesla investment into xAI which will require a shareholder vote later this year. There are a number of other key endeavors at Tesla including Optimus and the future of robotics with Tesla one of the clear future leaders in AI in our view. It starts with autonomous then robotics is the view of Tesla….bulls as we believe the autonomous valuation is worth $1 trillion alone to the Tesla story over the next few years."

"While the company has seen significant weakness in China in previous quarters given the rising competitive landscape across EVs, Tesla saw a rebound in June with sales increasing for the first time in eight months reflecting higher demand for its updated Model Y as deliveries in the region are starting to slowly turn a corner with China representing the heart and lungs of the TSLA growth story. Despite seeing more low-cost models enter the market from Chinese OEMs like BYD, Nio, Xpeng, and others, the company’s recent updates to the Model Y spurred increased demand while the accelerated production ramp-up in Shanghai for this refresh cycle reflected TSLA’s ability to meet rising demand in the marquee region. If Musk continues to lead and remain in the driver’s seat at this pace, we believe Tesla is on a path to an accelerated growth path over the coming years with deliveries expected to ramp in the back-half of 2025 following the Model Y refresh cycle.”

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 potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.