Tesla (TSLA) stock could be preparing for a huge run in the near future, with tech stocks set to rebound according to one expert. As one of the Magnificent-7 stocks, investors are backing the EV maker to rebound from its slow 2024. Currently, TSLA stock is being bought at an incredible pace, and Elon Musk’s recent comments have experts calling the company a “generational” investment opportunity.
Wedbush Securities research analyst Dan Ives recently said that taking advantage of the sell-off in Tesla stock right now could be a “generational opportunity.” In his latest investors note, Ives credits Tesla’s recent exploration into AI to assist in its EV development. The artificial intelligence industry has record momentum, and several big-tech companies are entering the AI race too.
Tesla is utilizing AI to help continue its autonomous driving initiative, especially for the RoboTaxi project. These vehicles could potentially disrupt several end markets including ride-hailing, delivery and logistics services, and car rentals. Considering FSD will be a subscription service, Tesla has an opportunity to generate billions in profit from high-margin recurring sales. This would set it far apart from rival tech stocks, especially in the automotive industry.
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Furthermore, Tesla’s humanoid robot, Optimus, is another generational opportunity for Tesla to set itself apart. Tesla’s vision is to integrate Optimus in factories, augmenting human workers along the assembly line. As Optimus scales and becomes more integrated with the manufacturing process, Tesla may be able to generate efficiencies from reduced labor costs. The potential sales could also attract investors looking for the best possible profits from a Mag-7-level stock.
At press time, Tesla (TSLA) stock is trading at 245.69. Shares are still down 27% in the past week, but investors appear to be buying the dip fast to prepare for a rebound. Individual investors have been net buyers of Tesla shares for 13 straight sessions through Thursday, pumping $8 billion into the stock, retail trading data from JPMorgan Chase’s global equity derivatives strategist Emma Wu shows. That’s the biggest inflow over any buying streak since 2015.