#YAHOO FINANCE TESLA SOFTWARE#

Tesla is a market-moving and consistently profitable EV maker, first and foremost. But we think it’s an auto company,” Jonas clarified. “With such an expansive total addressable market (TAM), Tesla can be considered many things. However, it’s important for investors to own TSLA stock for the right reasons - and to bear in mind that Tesla isn’t a generative AI business like OpenAI.

#YAHOO FINANCE TESLA SOFTWARE#

And Tesla does have AI connections, especially with the company’s self-driving software and Optimus robot. Although it may be “tempting to speak in platitudes about Tesla’s AI chops,” Jonas explains, the direction of the automaker’s stock “will be dominated by the supply and demand of electric cars over the next 12 months” (as paraphrased by Bloomberg).ĭon’t get the wrong idea. However, Morgan Stanley analyst Adam Jonas is reluctant to categorize Tesla stock as an AI stock. Due to the popularity of OpenAI’s ChatGPT chatbot, many investors are eager to buy practically anything with an AI connection. Speaking of buzz, it seems like everybody and their uncle is hyped up about machine learning nowadays. On May 12, I declared, “It’s definitely not too late to start a long position in Tesla stock.” The stock has rallied since then, so I feel pretty good about my bullish call.Īm I prepared to stand by that call now, though? Keep reading to discover the latest buzz about Tesla and whether it’s bullish, bearish or neither.ĭon’t Pigeonhole TSLA Stock as an AI Stock Nevertheless, Tesla’s loyal investors can remain optimistic about the future prospects of the company and the stock. However, this doesn’t automatically mean TSLA stock should be classified as an AI stock. Electric vehicle (EV) manufacturer Tesla TSLA certainly uses artificial intelligence (AI) to its advantage.

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