Melius Initiates Tesla With Buy Rating and $520 Price Target, Calls Stock a ‘Must Own’

Core Viewpoint - Melius Research initiated coverage on Tesla Inc. with a Buy rating and a price target of $520.00, emphasizing the company's unique ability to leverage artificial intelligence in the automotive and manufacturing sectors [1] Group 1: Tesla's Market Position - Tesla is identified as a "must-own" stock with the potential to transform multiple trillion-dollar industries as AI adoption accelerates through the 2030s [2] - The company has a distinct advantage in compute access and hardware management, which are critical differentiators in driving faster innovation cycles [2] Group 2: Innovation and Ecosystem - Tesla, along with the Musk-led ecosystem including xAI and SpaceX, has established a new standard in design and manufacturing through rapid iteration, vertical integration, and high-risk execution [3] - The swift development of data centers by xAI is highlighted as evidence of unmatched scaling capabilities [3] Group 3: Autonomous Driving and Manufacturing Expertise - Tesla's leadership in autonomous driving is noted as the first significant application of AI in the physical world [4] - The company's deep manufacturing expertise positions it favorably compared to technology peers to take advantage of the upcoming wave of robotics and automation [4]