Melius Reiterates Tesla (TSLA) as a ‘Must Own’ as FSD v14 Signals a Major Shift

Core Insights - Tesla, Inc. is recognized as a leading AI stock, with Melius reiterating a "Buy" rating, emphasizing that the company is a "must own" as significant changes in the automotive landscape are anticipated [1][2] - The latest version of Tesla's full self-driving (FSD) software, v14.1.7, has significantly improved the driving experience, positioning Tesla ahead of competitors [2][3] - Analysts believe that Tesla's strategic decisions over the years have created a sustainable competitive advantage, making it less likely for traditional automakers to catch up [4] Company Performance - Melius analyst Rob Wertheimer highlighted the transformative potential of autonomy in the driving ecosystem, predicting a shift of hundreds of billions in value towards Tesla over the next five years [2] - Piper Sandler praised Tesla's FSD v14 after a successful robo taxi test, indicating that it outperforms the average American driver [3] Competitive Landscape - The analysis suggests that legacy automakers are struggling to compete with Tesla in terms of innovation and cost efficiency [3][4] - There is a growing belief that Tesla's early strategic choices are yielding positive results, while competitors are facing challenges [4]