Tesla, Inc. (NASDAQ:TSLA) is one of the AI stock analysts are watching closely. On October 16, Exane BNP Paribas initiated the stock as “underperform” and with a price target of $307.00. The company said it cannot justify the stock’s valuation.
Exane BNP Paribas’ valuation model incorporates Tesla’s AI businesses, including robot companies Robotaxi and Optimus. Although these companies do not currently generate revenue, they are inflating Tesla’s valuation by representing approximately 75% of its target valuation of $1.02 trillion.
Even with ambitious forecasts, Tesla’s risk/reward is unfavorable, he noted. Additionally, 2026 cash flow is projected to be $4 billion below consensus, driven by margins and AI/software pressures.
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“We’re optimistic about the future of Tesla’s AI, which is reflected in our fairly generous baseline assumptions that see TSLA meeting more than half of Elon’s $1 trillion compensation package targets by 2035. But we still can’t justify the stock’s current valuation.”
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its robotics and autonomous driving technology initiatives.
While we recognize TSLA’s potential as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.
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