Tesla Target Raised by Deutsche Bank on AI Growth Potential

Tesla (TSLA, Financials) received a price target increase from Deutsche Bank on Friday, with the firm pointing to the electric vehicle maker's artificial intelligence initiatives as a key growth driver.

The bank said Tesla's AI-related projects could strengthen its competitive position and create new revenue streams beyond its core vehicle business. While details of the new target were not disclosed in the report summary, Deutsche Bank noted that advances in autonomous driving and AI-enabled software may play a larger role in Tesla's valuation.

The call reflects a broader theme among analysts, with several firms highlighting artificial intelligence as a central factor for stock performance. Morgan Stanley this week reiterated Microsoft (MSFT, Financials) as a top pick on the same grounds, citing expanding demand for enterprise AI solutions.

Investors will next look to Tesla's third-quarter earnings in October for updates on deliveries, margins, and progress in AI-related initiatives.