Wedbush remains bullish on Tesla (NASDAQ:TSLA) with an Outperform rating and $350.00 price target after the electric vehicle giant’s CEO, Elon Musk commented on social media platform, X creating a stir overnight.
Musk said his post: "I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control".
The multi-billionaire currently owns roughly 13% of Tesla after He sold a large stake in the company to fund his $44B purchase of Twitter.
The bullish stance held by Wedbush on Tesla emphasizes keeping all AI initiatives, including Dojo, Optimus and FSD among other robotic initiatives, within the company. The market recognizes Tesla as a disruptive tech leader. Wedbush believes that if Musk was to create a separate company for his next-gen AI projects, it would be a major drawback for Tesla.
The Board and top shareholders acknowledge the "key man risk" in Musk's AI involvement, especially with what is seen as an impending AI Revolution.
“At the end of the day we believe the Board and Musk will be able to resolve this issue over the next 3-6 months,” wrote analysts in a note, adding, “ultimately all AI initiatives will be kept within Tesla.”
Shares of TSLA are up 0.79% in mid-day trading on Tuesday.