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On Monday, Tesla (TSLA, Financial) shares were reiterated as "Overweight" by the investment bank Morgan Stanley Which cited the company's important role in the burgeoning field of embodied artificial intelligence (AI). Tesla's advancements in AI and supercomputing set it up to grow in applications such as autonomous vehicles (AVs), electric vertical take-off and landing aircraft (eVTOL), autonomous mobile robots (AMRs) and humanoid robots, said the firm.
Increasing demand for passive optical data to build digital twins of the physical world is central to the firm's analysis & is required for training foundational AI models. As AI applications emerge, there is an anticipated rush to acquire computing infrastructure for training and simulation globally with AI.
That's in addition to China's growing progress in embodied AI, according to Morgan Stanley, aided by government initiatives and mass production capabilities. It comes with a unique challenge to Tesla as China has been competing in its autonomous tech, which could affect Tesla's operations in this region.
Tesla continues to dominate the electric vehicle (EV) market, and the company said that the U.S.'s leadership in the autonomous sphere may rest on its acceptance of electric mobility. As geopolitical competition in the AI and robotics sectors intensifies and Tesla's valuation propels beyond EV cars, the future market valuation for Tesla could spread beyond EVs.
This article first appeared on GuruFocus.