10 Best Autonomous Driving Stocks To Buy According to Hedge Funds

4. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 99

Tesla, Inc. (NASDAQ:TSLA), headquartered in Austin, Texas, is a leading American automotive and clean energy company. Renowned as a pioneer in the electric vehicle industry, Tesla has played a pivotal role in accelerating the global transition to sustainable transportation through its innovative electric cars and advanced energy solutions. However, its approach to full self-driving (FSD) technology remains a topic of debate. All Tesla vehicles are equipped with Autopilot, an advanced driver-assist system (ADAS) that includes adaptive cruise control and auto-steering to maintain lane position. The optional Full Self-Driving (FSD) package offers additional features, though drivers must remain attentive and ready to take control at any moment.

Unlike many of its competitors that use lidar (light detection and ranging) for mapping surroundings, Tesla, Inc. (NASDAQ:TSLA) is pioneering a camera-based approach through computer vision. To accelerate its FSD development, the automaker is building a cutting-edge supercomputer called “Dojo” to train its AI algorithms.

In the third quarter of 2024, Tesla, Inc. (NASDAQ:TSLA) demonstrated strong financial performance, largely fueled by increased vehicle deliveries. The company reported $25.18 billion in revenue, an 8% year-over-year increase, slightly below the $25.37 billion analyst estimate. On the other hand, the company surpassed earnings expectations, posting an EPS of $0.72 versus the forecasted $0.58, boosting investor confidence.

On December 5, BofA raised its price target for Tesla, Inc. (NASDAQ:TSLA) shares from $350 to $400 following a visit to the company’s Giga Texas factory in Austin. The bank highlighted the capability of Tesla’s FSD versions 12.5 and 13.2, which successfully navigated complex roadways autonomously. The company aims to achieve one intervention per 10,000 miles soon, a milestone critical for its planned 2025 robotaxi launch.