Why Evercore Expects Tesla (TSLA) Shares to Trade Sideways in the Near Term

Tesla, Inc. (NASDAQ:TSLA) is one of the AI Stocks Analysts Are Watching Closely. On January 6, Evercore ISI reiterated the stock as “In Line”. The firm believes that Tesla will likely “see-saw” for the foreseeable future.

“For TSLA, who doesn't guide, the stock is likely a short-term seesaw between lackluster legacy (~$100 of value; ~40c EPS Q4/Q1) vs headline/thematic focus on Austin "driver out.'"

In other news, Nvidia just launched unveiled a new tech platform for self-driving cars as part of its AI push. The driving AI product, Alpamayo, is built for Level 4 Autonomy and will come to the U.S. in Q1 2026 in certain certain Mercedes-Benz vehicles.

This family of AI models is designed to bring "humanlike thinking" to autonomous vehicle decision-making.

In a post on X, Musk said he was “not losing any sleep” over the announcement and also wished that Nvidia’s effort succeeds. However, investors didn’t react positively to the news and the stock fell after.

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.