Why Tesla Stock Is a Must-Own in the Age of AI
Tesla (NASDAQ: TSLA) surged 5.4% Monday to close at $435.90, rebounding from Friday’s sharp selloff. The move was fueled by a new bullish call from Melius Research, which initiated coverage with a Buy rating and a $520 price target. Analyst Rob Wertheimer said Tesla is positioned to lead the next wave of industrial disruption driven by artificial intelligence.
AI as the Next Catalyst
Wertheimer called Tesla a “must-own” stock, arguing that AI-driven automation will “wreck multi-trillion dollar industries, starting with auto.” Tesla’s end-to-end integration of software, hardware, and data gives it a competitive edge that traditional automakers cannot replicate. From self-driving algorithms to humanoid robotics, Tesla’s “AI flywheel” continues to accelerate.
“Tesla and the Musk ecosystem combine technology, design, and manufacturing in a way no one else can,” Wertheimer wrote. The company is effectively a hybrid of AI lab, EV manufacturer, and robotics company—a rare combination that could redefine its valuation beyond traditional auto metrics.
Market Context
The bullish upgrade arrives amid broader macro turbulence. President Trump reassured markets that his administration’s trade standoff with China will not derail the economy. The S&P 500 rose 1.6% and the Dow Jones Industrial Average added 1.3% on Monday, helping lift risk sentiment in growth sectors.
Tesla remains a bellwether for the EV and AI convergence trade. Its integration of large-scale computing, energy storage, and autonomy data provides exposure to three high-growth verticals simultaneously: transportation, power, and machine learning.
Trader’s Take
- Momentum Watch: After rebounding from $410 support, Tesla is back above its 20-day moving average. Intraday traders should watch $440 for continuation and $426 for downside confirmation.
- Short-Term Setup: Above $440, price targets align with $455 and $470. Failure to hold $426 could trigger a retracement toward $410.
- Swing Trade View: As long as Tesla holds above $410, the bias remains bullish toward $520–$540 in Q4, especially if the AI and robotaxi narrative gains traction.
- Sector Read-Through: Nvidia (NVDA), AMD (AMD), and Mobileye (MBLY) often move in sympathy. Traders can monitor correlation strength for rotational plays within the AI-auto ecosystem.
Why It Matters
Tesla’s AI positioning transcends EV manufacturing — it’s about data ownership and compute capacity. With full self-driving capability nearing commercial viability and the Optimus robot expected to enter pilot deployment, Tesla’s core multiple may shift toward software-style valuation metrics in the coming year.
Nearly 47% of analysts now rate Tesla a Buy, and the stock’s ability to rally despite macro pressure reinforces its leadership in both AI and EV narratives.
Bottom Line
Tesla is trading less like an automaker and more like a tech platform. The latest upgrade underscores the idea that Musk’s AI ecosystem could become the defining growth story of 2025.
For traders, pullbacks toward $420–$425 are likely to attract dip buyers targeting a re-test of $450+ as momentum builds.