(Seoul=Yonhap Infomax) Kyung Pyo Hong – Melius Research has identified Tesla Inc. as an essential holding for investors, forecasting that the era of autonomous driving led by Tesla is imminent.


According to Yahoo Finance on the 24th (local time), Rob Wertheimer, analyst at Melius, stated, "Despite recent risks, we consider Tesla a must-own stock because the world is about to change rapidly."


He added, "Autonomous driving technology is on the horizon and will transform every aspect of the driving ecosystem. Over the next five years, hundreds of billions of dollars in value will shift from companies in decline to Tesla."


Melius argued that Tesla's autonomous driving software acts as a catalyst for the advancement of self-driving technology.


"Just one or two years ago, it was assumed that other companies could quickly catch up to Tesla, but now that is far from certain," Melius noted.


The firm also highlighted Tesla's artificial intelligence (AI) chip manufacturing capabilities as a key competitive advantage.


"Tesla's AI chips, which underpin autonomous driving computing, are specialized and powerful," Melius explained. "While AI chips were a major bet for Tesla, it is hard to imagine other companies making such decisions at this stage."


Tesla shares closed up 6.82% at $417.78 in the previous session.


Tesla Stock Price Chart
[Source: Yonhap Infomax]


kphong@yna.co.kr


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