Investors believe in Tesla's potential amid AI hype

According to information published by Business Insider, investors are showing interest in Tesla shares not only as a leading manufacturer of electric cars, but also in the context of the prospects for artificial intelligence (AI).

Analysts note that Tesla "is seen as a companion bet on AI," given the market hype surrounding the technology. Retail investors are investing in Tesla stock, seeing it as an investment not only in the leading electric vehicle maker, but also in AI.

This year, retail traders have increased their bets on Tesla shares, and the company's 10-day average retail trading volume exceeds that of other retail EV and AI stocks. Retail purchases of shares of other electric vehicle manufacturers, with the exception of Tesla, are only 6% of the average daily purchases of Tesla shares, and flows into Tesla shares are 5-10% higher compared to the fourth quarter of 2020 and the first quarter of 2021.

Tesla's rally in 2023 is partly due to interest in AI technologies, which are leading the market this year.

It is interesting to note that retail investors perceive Tesla as an "AI proxy" and not just an electric car manufacturer.

In addition to retail investors, institutional investors are showing interest in Tesla in connection with this topic, despite claims by Tesla CEO Elon Musk about the potential dangers of AI. Musk himself noted that Tesla can introduce AI into its business, given the hype that has arisen around ChatGPT.