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

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks Every Investor Should Watch. On 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 9^th. 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.

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 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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