Tesla Stock Rises as Analysts Call It a 'Must-Own' for the AI Era

Tesla (TSLA, Financials) gained more than 5% Melius Research analyst Rob Wertheimer initiated coverage with a Buy rating and $520 price target, calling the automaker a must-own stock in the artificial intelligence era.

The new target implies roughly 19% upside from current levels. Wertheimer said Tesla's integration of AI across its business gives it a structural lead in automation and computing efficiency compared with traditional automakers.

He cited Tesla's close links to Elon Musk's other ventures, including SpaceX and xAI, which are expanding AI infrastructure and data center capacity. Wertheimer said the companies' shared technology base and speed of execution support Tesla's long-term competitive position.

The analyst added that Tesla's development of autonomous driving is its first major real-world AI application. He expects the company to advance more rapidly than peers given its control of both hardware and data.

Still, Wertheimer noted that weak electric vehicle demand could weigh on near-term results as Tesla continues to balance production costs with pricing.