Tesla is the Most Undervalued AI Stock in the Market, According to Wedbush

Wedbush analysts have reaffirmed their strong bullish outlook on Tesla ahead of the company’s highly anticipated “We, Robot” Robotaxi Day event, set to take place tomorrow at 10 PM EST in Los Angeles.

The analysts view this event as a “historic moment” for CEO Elon Musk and Tesla, signaling a key milestone in the company’s pursuit of autonomous driving and artificial intelligence (AI).

Wedbush expressed confidence that “Robotaxi Day will be a seminal and historical day for Musk and Tesla, marking a new chapter of growth around autonomous, FSD, and AI technologies.” They believe Tesla is currently the “most undervalued AI name in the market” and expect the event to showcase transformative autonomous technology.

Analysts forecast that Musk will share vital information regarding the anticipated Robotaxi, which is rumored to be called the “Cybercab,” as well as insights on Tesla’s Next-Gen Platform and advancements in Full Self-Driving (FSD) technology. They also expect a comprehensive strategy for the rollout of Robotaxis over the next year.

Wedbush anticipates that Musk will address the immediate challenges currently facing investors while also outlining the company’s long-term vision. They state: “We firmly believe that Tesla remains a robotics/AI play in the future rather than just an EV vendor.”

The firm maintains an Outperform rating and a price target of $300 for Tesla.

Additionally, Wedbush notes that Tesla has recorded over 1.5 billion miles in its FSD data centers. The recent launch of FSD version 12.5 has shown significant advancements, and they predict that version 13, expected by the end of the year, could result in a sixfold improvement in miles-per-intervention, further enhancing Tesla’s autonomous capabilities.

As anticipation for Tesla’s humanoid robots, referred to as Optimus, continues to grow, Wedbush is eager for updates in this area as well. They consider this event a crucial moment for Tesla, with the potential to “revolutionize urban transportation” based on years of research and development in Robotaxi technology.

With a focus on addressing challenges such as insurance, vehicle costs, timing, regulatory approvals, and operational logistics, Wedbush concluded that the AI and FSD sectors could represent an enormous $1 trillion opportunity for Tesla in the coming years.