Oppenheimer says that while Tesla (TSLA) has shifted focus to being a physical artificial intelligence play, Elon Musk’s bid for OpenAI is distraction from the company’s challenges. The bid comes at a 38% discount to OpenAI’s October 2024 capital raise and is unlikely to lead to any meaningful discussions, the analyst tells investors in a research note. However, Oppenheimer sees increasing risks to Street estimates for Tesla as electric vehicle and autonomous vehicle competition intensifies. The firm also believes CEO Elon Musk’s political activity “risks alienating consumers and employees as the Trump administration tests the limits of its power.” Opco highlights that the negative trends in California and European electric vehicle registrations in 2024 continued in January while China data suggests a soft start to the year. The firm keeps a Perform rating on shares of Tesla.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on TSLA:
- Lyft Stock Soars on Mobileye Robotaxi Deal Ahead of Q4 Earnings
- Tesla (NASDAQ:TSLA) Loses More Market Share in China as Price War Rages
- Tesla: Strategic Positioning and Competitive Edge in the Evolving Automotive Landscape
- OpenAI finalizing in-house chip design this year, Reuters reports
- Elon Musk’s Brother and Tesla Director Kimbal Sells $28M Worth of Stock