Tesla (TSLA) Stock Movement Analysis: Melius 'Must Own' Call & AI Chip Progress Impact

This analysis is based on a Yahoo News article linked via Reddit [1], where Melius Research called Tesla (TSLA) a “must own” due to Full Self-Driving (FSD) and AI chip progress, alongside Elon Musk’s AI chip comments. The event was reported to lead to a 7% stock pop, though internal data shows TSLA gained 3.88% on Nov 24 (event date) with elevated volume (96.81M) [0]. The 5-day performance was +6.03% [0]. Bullish sentiments focus on FSD and AI chips as long-term revenue drivers [1][2], while bearish views highlight overvaluation (P/E ratio of 259.24x [0]), unfulfilled promises (Optimus robots, robotaxi deployment [3]), and FSD competition from Waymo.

Cross-domain connections emerge: AI chip progress directly ties to FSD’s value proposition, central to Melius’ bullish call. The stock’s reaction underscores investor sensitivity to AI-related news, even amid persistent bearish concerns. The divide between bullish long-term potential and bearish execution gaps creates mixed market sentiment.

• Risks
  : High valuation (P/E 259.24x) leaves little room for disappointment [0]; execution risks for unfulfilled product promises [3]; regulatory scrutiny of FSD [4]; competition from Waymo.
• Opportunities
  : FSD and AI chips as transformative revenue streams [1][2]; potential robotaxi fleet expansion (Austin teased [3]).

Tesla’s stock reacted positively to Melius’ call and Musk’s AI comments, with internal data showing a 3.88% gain on Nov24. Key metrics include a 259.24x P/E ratio, 96.81M volume on event day, and +6.03% 5-day performance. Investors should monitor FSD regulatory approvals [4], AI chip milestones [1], and execution of product promises [3].