Melius Starts Tesla (TSLA) at Buy

Melius analyst Rob Wertheimer initiates coverage on Tesla (NASDAQ: TSLA) with a Buy rating and a price target of $520.00.

The analyst comments "We see Tesla shares as a must own. The disruptive force of AI will wreck multi trillion dollar industries, starting with auto. It could damage rideshare as a sideswipe, and has unpredictable implications for other industries into the 2030s and beyond. Tesla is unique in its ability to deliver on this potential. Access to compute and ability to manage it have become a new differentiator in a world where rising computing power accelerates the pace of change. Keeping pace isn’t easy for most companies. Tesla and the Musk ecosystem can, and in a combination of tech and design/manufacturing that no one today can replicate. Touching the physical world requires expertise that not every tech giant has. xAI is delivering new datacenters at a pace unmatched by even fast moving peers. Tesla and SpaceX have transformed design and manufacturing: rapid iteration, faster design and test feedback loops, vertical integration for speed, and taking large risks for large rewards are all differentiators. Under Musk’s leadership, the company is comfortable taking risks (we thought building cars in tents was insane, but it worked well enough). It has manufacturing scale and supply chain expertise that robotics startups possess more by proxy. It can rapidly improve and scale autonomy in driving, the first major manifestation of AI in the physical world, and lots of change will follow."

For an analyst ratings summary and ratings history on Tesla click here. For more ratings news on Tesla click here.

Shares of Tesla closed at $413.49 yesterday.

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