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An artificial intelligence (AI) enhanced program, courtesy of Microsoft’s (NASDAQ:MSFT) Bing search engine, told me that Tesla (NASDAQ:TSLA) stock could go to $2,000. Has the machine completely lost its mind? Not necessarily, as the argument in favor of Tesla’s hyper-growth story is stronger than some skeptics might think it is.

First things first: One shouldn’t rely solely on an AI program when making investment decisions. That said, it’s an interesting and instructive exercise to ask Bing, which is enhanced with OpenAI’s ChatGPT AI chatbot functionality, what it thinks about Tesla’s future prospects.

I was surprised when the Bing bot served up three reasons why TSLA stock could reach $2,000. I was even more surprised to discover that those reasons were valid to varying degrees. So, let’s take a closer look at the AI program’s argument for investing in Tesla now.

Tesla Remains an Electric Vehicle Industry Dominator

Tesla, according to Bing, is a “leader and innovator” in the electric vehicle (EV) space. That’s the chatbot’s first point, and it’s practically indisputable.

Bing rambled a bit about Tesla’s “loyal fan base” and “strong brand image,” but I’m much more interested in hard facts. Unfortunately, the bot provided data from 2021, so I went straight to the source. Tesla’s fourth-quarter and full-year 2022 update offered more than enough fodder for a bull case.

In Q4 2022, Tesla delivered 405,278 vehicles, up 31% year over year. For the full year, Tesla delivered 1,369,611 EVs, up 47% compared to 2021. Rivals like Lucid Group (NASDAQ:LCID) and Rivian Automotive (NASDAQ:RIVN) certainly can’t compete with those numbers. Thus, Bing’s first point is duly noted.

Tesla Is a Strong Contender in a Rapidly Growing Market

Next, the AI chatbot suggested that Tesla has “huge growth potential in the EV and clean energy markets.” Bing backed this assertion up by stating, “The EV market is expected to grow at a compound annual growth rate of 26% from 2021 to 2030, reaching $2.5 trillion by 2030.”

I wasn’t able to confirm that estimate, but I did find a similar one. According to Market Research Future, the EV market is anticipated to grow to $957.06 billion by 2030, at a cumulative annual growth rate (CAGR) of 24.5% from 2022 to 2030. That’s pretty close to what Bing came up with, and it confirms that Tesla is immersed in a fast-growing industry.

Furthermore, Bing observes that Tesla “has a competitive advantage in both markets due to its technological leadership, vertical integration, and economies of scale.” As you can see, AI is capable of spewing out strings of buzzwords; sometimes I wonder whether the chatbot actually understands what it’s saying. That said, it’s undeniable that Tesla is the bluest of blue-chip EV businesses due to its relatively lengthy history in the space and the company’s deep capital reserves.

TSLA Stock Can Be Viewed as Undervalued

This Bing-provided point is the toughest one to defend. Apparently, the chatbot feels that TSLA stock is “undervalued compared to its peers.” Oddly enough, Bing apparently thinks that Tesla’s “peers” are Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google.

This, dear reader, is an example of why AI can’t completely replace real humans with common sense. In any case, Tesla’s trailing-12-month price-to-earnings (P/E) ratio of 50.51x might appear somewhat elevated. However, among U.S. automotive manufacturers that only produce EVs, Tesla’s valuation isn’t excessive.

I say this because competitors like Lucid and Rivian don’t even have P/E ratios, since they have no earnings. Hence, it’s easier to assign a valuation to Tesla. Plus, Tesla’s powerful EV delivery growth (discussed above) indicates that TSLA stock is a good value.

Consequently, it’s entirely possible that Bing is right and the Tesla share price will get to $2,000. Just don’t expect this to happen in 2023 or 2024, as Tesla’s growth story is a marathon, not a sprint.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

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