TSLA: Tesla Stock Rises as Baird Calls It the Leader in 'Physical AI'

Sep 19 - Tesla TSLA stock rises after receiving a boost on Friday after Baird shifted its rating to "Outperform" from "Neutral", calling the EV maker the leader in physical AI. The upgrade arrived despite expectations for near-term volatility, with the firm noting that investor attention has moved beyond recent uneven results toward Tesla's long-term initiatives.

Analyst Ben Kallo pointed out that muted stock reactions following weaker quarters and growing inquiries from investors signal a shift in focus to Tesla's future roadmap. Baird highlighted several potential catalysts, including the upcoming reveal of Tesla's Optimus humanoid robot, expansion of its U.S. robotaxi business, plans for more affordable vehicles, and the shareholder vote on CEO Elon Musk's compensation package.

Shares of TSLA climbed 3% on morning trading, extending a 25% rally over the past six weeks. Tesla will report Q3 deliveries in less than two weeks, a closely watched metric for gauging demand.

With momentum building around AI-driven products and mobility services, the firm's endorsement reflects optimism that Tesla can extend its reach beyond EVs into the broader AI ecosystem.