Tesla Surges Ahead of Its Rivals as the Most Innovative Company

Gene Munster’s Bold Assertion: Gene Munster, managing partner at Deepwater Asset Management, claims that Tesla Inc. TSLA tops the innovation charts, outpacing major tech firms like Apple Inc. AAPL, Alphabet Inc. GOOG GOOGL, and Nvidia Corporation NVDA.

Remarkable Stock Performance: Munster noted on X (formerly Twitter) that Tesla’s stock increased by an impressive 84% over the past 65 trading days, primarily following the ‘We, Robot’ event in October.

This rise in stock value can be linked to renewed faith in the company’s autonomous driving technology and robotics. Munster also highlighted that, in contrast, the average performance of the rest of the “Magnificent 7” stocks was merely a 10% increase, while the Nasdaq saw an 8% gain.

Market Insights: As of now, Tesla’s market capitalization is estimated to be $1.3 trillion. Munster compared Tesla’s valuation with other giants boasting market caps over $2 trillion, such as Apple, Amazon.com, Inc. AMZN, Google, Microsoft Corporation MSFT, and Nvidia. He believes that Tesla stands out as arguably the most innovative among these firms.

In his view, “Tesla’s market cap has plenty of room to grow.”

Importance of the ‘We, Robot’ Event: At this notable event, Tesla demonstrated the capabilities of 19 Cybercabs and 29 Model Ys driving autonomously, with no safety incidents reported, as confirmed by Tesla executive Ashok Elluswamy.

Additionally, Cathie Wood, CEO of ARK Investment Management LLC, described Tesla as “the largest AI project on Earth,” emphasizing its potential to disrupt various industries.

Future Prospects: Earlier in the week, Gary Black, managing partner at The Future Fund LLC, increased his price target for Tesla by 27%, bringing it to $380. He cites the anticipated launch of a $25,000-$30,000 hatchback model as a driving force behind this positive revision.

This new model may capture about 15% of the global compact car market, further cementing Tesla’s growth path.

In China, Tesla’s sales continue to trend positively, with insurance registrations reaching 21,900 units for the week ending Dec. 8, marking its second-best sales week in 2024.

Current Stock Performance: On Tuesday, Tesla shares closed the trading day up by 2.187%, finishing at $400.99. Following regular trading hours, the stock increased by another 0.55%. To date, shares have risen by 61.42% this year, according to Benzinga Pro data.

Currently, analysts have a consensus “hold” rating for Tesla stocks. Among the predictions, Stifel’s price target of $411 was set on Dec. 2, while more recent projections from Cantor Fitzgerald, Morgan Stanley, and Deutsche Bank average $378.33, indicating a potential downside of 6.17% from current levels.

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Disclaimer: This content was partially composed with the assistance of Benzinga Neuro and edited for clarity by Benzinga staff.