RBC Backs Tesla's (TSLA) Humanoid Strategy as the Robot Race Widens

Tesla, Inc. (NASDAQ:TSLA) is one of the Must-Watch AI Stocks on Wall Street. On December 4, RBC reiterated the stock as “Outperform.” The firm believes that Tesla is a key player in the humanoid race but that the robot race remains wide open.

“Tesla is focusing on deploying its Optimus humanoid robot across manufacturing, hospitality, and consumer markets, while intentionally excluding military and police applications.”

Firm analyst Tom Narayan projects a $400 billion in robot sales by 2050. Discounting this value back to today, he estimated that the robot division is currently worth about $640 billion. This valuation represents more than one-third of the firm’s $500 price target for the stock.

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.