We recently published a list of Top 10 Stocks to Watch as AI Trade Dynamics Change. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other top stocks to watch as AI trade dynamics change.
Aswath Damodaran from NYU Stern School of Business said in a recent program on CNBC that AI “buzzwords” are not boosting the market anymore as investors grow more concerned about capital spending.
“I’ve said about data centers we’ve gotten way ahead of the game. I mean, the AI product and service business, which ultimately is what has to pay for all of this, has not taken off in any substantial way. I’m hard-pressed to think about any company making significant money from the AI product and service business.”
Damodaran said that the “sobering” of the AI trade started in September last year and the DeepSeek breakthrough in China also had an impact on the industry.
“It’s part of, I think, what you see almost every buzzword in history in the last four decades. I call these the ‘bar mitzvah moment,’ where people wake up and say, ‘Okay, there’s a lot of promise here, but show me something that I can hang my hat on.’”
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Number of Hedge Fund Investors: 99
Keith Fitz-Gerald, Fitz-Gerald Group CIO, said in a latest program on CNBC that while he’s frustrated with the latest selloff around Tesla Inc (NASDAQ:TSLA), he continues to believe in the company for the long term.
“You know, I think if we look at FSD, we look at autonomy, we look at all the things that Tesla is involved in, if you take Musk himself out of the equation for a few minutes, you can’t deny that that company continues to change the planet. So, this is one of those moments where I’m going to hold my nose, I’m going to continue to wait anyway, and I hope that I have enough shares at the end of the day.”
Analysts are looking beyond Elon Musk’s big claims and digesting the harsh reality facing the company. Tesla’s sales are falling all over the world despite the broader industry growth. For example, in California, the largest U.S. market for electric vehicle adoption and sales, Tesla sales fell about 12% year over year in 2024, causing its market share to drop from 60.1% in 2023 to 52.5% in 2024. Was it because Californians are buying fewer EVs? No. Californians purchased more than 2 million electric cars during the year, almost double when compared to the past two years.
