Tesla's AI Edge in the Wake of DeepSeek's Emergence
As concerns about Chinese AI disruptors like DeepSeek loom over tech giants, Tesla (TSLA) emerges as a potential beneficiary amidst the renewed market focus on AI.
DeepSeek's Potential Game Changer
Morgan Stanley's Adam Jonas highlights DeepSeek's R1 reasoning model as a challenger to OpenAI's ChatGPT, raising questions about global AI competition and national security implications.
Embodied AI: Tesla's Niche Advantage
Jonas emphasizes "embodied AI" as the key battleground in the AI race, where physical objects leverage AI for enhanced functionality. For Tesla, this translates to advancements in self-driving software and the potential for Robotaxis.
Electric Vehicles as Data Hubs
As visual data becomes paramount for VLA foundation models, Tesla's extensive data collection capabilities provide a significant advantage.
Optimus Robot and National Security
The renewed focus on embodied AI aligns with Tesla's bullish outlook on its Optimus robot. Musk envisions a vast market for these robots, fueled by military and government interest in their potential for both civilian and military applications.
Morgan Stanley's Tesla Top Pick
Morgan Stanley maintains its "Top Pick" rating for Tesla in the automotive sector, with a price target of $430. The firm believes Tesla's embodied AI capabilities and its role in data collection position it well in the rapidly evolving AI landscape.