Exane BNP Paribas Starts Tesla (TSLA) at Underperform With $307 Price Target

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks Analysts Are Watching Closely. On October 16, Exane BNP Paribas initiated the stock as “Underperform” and a price target of $307.00. The firm said it can’t justify the stock’s valuation.

Exane BNP Paribas’s valuation model incorporates Tesla’s artificial intelligence ventures, including Robotaxi and Optimus robot businesses. Even though these businesses currently generate no revenue, they are inflating Tesla’s valuation by accounting for an estimated 75% of their $1.02 trillion price target valuation.

Even with ambitious forecasts, Tesla’s risk/reward is unfavorable, it noted. Moreover, the 2026 cash flow is projected $4B below consensus, driven by margin and AI/software pressures.

“We are bullish on Tesla’s AI future, reflected in our quite generous base-case assumptions that see TSLA hitting over half of Elon’s 2035 $1trn comp package targets. But we still can’t justify the stock’s current valuation.”

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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