Truist Flags Autonomous Driving Volatility Despite Higher Tesla (TSLA) Price Target

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks in the Spotlight for Investors. On December 19, Truist Securities raised its price target on the stock to $444.00 from $406.00 while maintaining a “Hold” rating.

The firm believes that autonomous driving developments will lead to continued volatility in the stock despite long-term AI vision. A large part of Tesla’s value is linked to how successfully it is able to commercialize its AI products and services, it said. This is particularly true for its Robotaxi service, which is enabled by its FSD technology.

"We believe new city announcements will be forthcoming in 2026, but timing of these will be unpredictable. Further, imperfections in FSD outcomes (see this note) and announcements from competitors will contribute to the volatility."

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.