10 Best Automotive Stocks To Buy Now

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1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 85

Tesla, Inc. (NASDAQ:TSLA) is the pioneer in electric vehicle manufacturing and is based in Austin, Texas.

Some investors may be skeptical about Tesla, Inc. (NASDAQ:TSLA), considering the fact that EV sales have been slowing, primarily because of the high cost associated with battery replacements. However, a big incentive to invest in Tesla, Inc. (NASDAQ:TSLA) right now is the fact that it is diversifying its business. A major chunk of this diversification is coming from the robotaxi business that the company is developing. Longtime investor in Tesla, Inc. (NASDAQ:TSLA), Cathie Wood, has actually based much of her thesis for owning this stock on the potential of the robotaxi business. Wood believes that this business may comprise 86% of Tesla, Inc.’s (NASDAQ:TSLA) earnings in 2029.

Another reason for investing in Tesla, Inc. (NASDAQ:TSLA), often cited by enthusiastic investors, is Musk’s vision for the company’s future. Whether it’s robotaxis or the Optimus robot, these proposals seem to attract many investors who believe in the strength of their growth potential. Overall, Tesla, Inc. (NASDAQ:TSLA) has seen revenue growth of 30.8% over the past five years and 31.6% over the past three years, so there is enough justification for believing that the company will only continue to see more growth in the future.

We saw 85 hedge funds long Tesla, Inc. (NASDAQ:TSLA) in the second quarter, with a total stake value of $4.9 billion.

While automotive stocks like TSLA have great potential, we believe that AI stocks hold promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones mentioned in our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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