Move Over Tesla, This EV Stock Will Be the Hottest Trade Over the Next 3 Years
EV stocks are quickly becoming AI stocks.
Overview
Over the past year, I've consistently argued that Tesla (NASDAQ: TSLA) should now be viewed as an artificial intelligence stock, rather than a traditional electric vehicle stock. The reasons for this are simple.
First, Tesla has struggled with auto sales in recent years, yet its market cap continued to soar. This alone should tell you that the market no longer views the business strictly as an automaker. Second, analysts increasingly believe that future sales growth will be spurred by technologies such as self-driving cars and robotaxi services -- two markets enabled by rapid advances in AI. AI is so key to Tesla's future that earlier this year, the company invested $2 billion in xAI, Elon Musk's AI start-up that is now owned by Space Exploration Technologies (NASDAQ: SPCX).
Details
SpaceX, of course, is also one of the biggest AI stocks on the planet, even though many laypeople think of the company as a rocket stock or a satellite internet company. At its core, however, SpaceX's growth opportunities are fueled by its investments in AI. The same is true for Tesla.
Source
Originally published at www.fool.com.