Why Tesla Is Becoming a ‘Must-Own’ Stock in the New Age of Autonomy

Analysts say the world is on the brink of a seismic transformation — and Tesla is positioned to capture hundreds of billions in value

Tesla’s leadership in autonomous driving is approaching what analysts describe as an irreversible tipping point — one that could trigger one of the biggest industrial shifts in modern history. According to a new report from Melius Research, investors may soon witness a dramatic realignment in a global sector worth $7 trillion.

Analyst Rob Wertheimer says the firm recently classified Tesla as a “must own”, arguing that the world is “about to change, dramatically” as autonomous vehicles move from slow, incremental progress to explosive commercial adoption.

Autonomy’s ‘Gradually, Then Suddenly’ Moment

Drawing inspiration from Ernest Hemingway’s famous line on bankruptcy — “two ways: gradually, then suddenly” — Wertheimer suggests the same phenomenon is now unfolding in autonomy.

• Years of steady improvements are on the brink of giving way to mainstream acceptance.
• The shift could redirect hundreds of billions of dollars in value towards Tesla over the next five years.
• Crucially, Melius stresses that the risk does not lie with Tesla — but with every other carmaker struggling to keep pace.

The report highlights that public awareness remains extremely limited. Fewer than 1% of Americans have ever ridden in a self-driving car, and only “tens of thousands” have tested Tesla’s latest supervised Full Self-Driving (FSD) system. Yet once the technology becomes widely available, Wertheimer expects it will “shock most people”.

Why Tesla’s Lead Is Widening

According to Melius, Tesla’s dominance in autonomy stems from several strategic decisions that competitors did not replicate:

• A shift to end-to-end neural networks in 2021–2022, allowing the vehicle to interpret and respond to the world more like a human driver.
• Massive increases in AI training compute, accelerating how quickly the system improves.
• The upcoming AI5 chip, which is expected to deliver another major leap in processing power.
• Tesla’s unique approach to vertical integration — controlling chips, software, hardware and data pipelines internally — unlike legacy automakers relying on fragmented supplier ecosystems.

Melius says these decisions have created a widening gulf: traditional carmakers are stuck with outdated platforms, slower update cycles, and architectures never designed for full autonomy.

A Shockwave for the Global Automotive Industry

The research argues that the adoption of driverless cars will be one of the most disruptive events in industrial history:

• Autonomy could redefine transport, logistics, insurance and urban mobility.
• Companies unable to transition quickly risk obsolescence — drawing comparisons to the “buggy whip” companies displaced when motor vehicles replaced horse-drawn carriages.
• Tesla could seize a disproportionate share of industry value, supported by its rapid software improvements and expanding data advantage.

Tesla’s current FSD iteration, version 14.1.7, is cited as evidence of accelerating capability. As adoption grows, Melius believes the company’s technological lead will become self-reinforcing, driving further growth and competitive separation.

Conclusion: A Decade-Defining Investment Theme

Autonomous driving has long been discussed as a future trend — but Melius Research argues the inflection point is now imminent. With powerful AI architecture, advanced proprietary chips, and unmatched real-world data, Tesla is entering a phase where gradual progress becomes sudden, market-transforming change.

For investors, Tesla is not simply an electric vehicle manufacturer; it is increasingly viewed as a foundational AI and autonomy platform — one positioned to dominate a multi-trillion-dollar industry shift.

Sources: (Investing.com, Reuters.com)