10 Best Blue Chip Stocks to Buy for 2025

4. Tesla, Inc. (NASDAQ:TSLA)

Market Cap as of January 8: $1.27 Trillion

Past Year Gain (2024): 68%

Number of Hedge Fund Holders: 99

Tesla, Inc. (NASDAQ:TSLA) is an auto manufacturer that designs, develops, leases, and sells electric vehicles, energy generation and storage systems. It is one of the best blue chip stocks to buy for diversifying an investment portfolio amid growing demand for electric vehicles. The company’s outlook is looking increasingly positive especially on EV sales in China, increasing by 8.8% in 2024. The increase came in one of the most challenging years as the US EV giant faces regulatory challenges and stiff competition.

Tesla, Inc.’s (NASDAQ:TSLA) total EV deliveries in 2024 totaled 1.79 million vehicles. Robust sales have positioned the company to continue generating free cash flow. In the third quarter, its free cash flow increased 233% to $2.7 billion, pushing cash and investments to $33.6 billion. Investors are placing bets that the company’s development of hardware and artificial intelligence software will result in an autonomous network of Tesla cars, giving it a new source of income akin to Uber.

While electric vehicle sales continue to drive free cash flow growth, Tesla, Inc. (NASDAQ:TSLA) is also well positioned to capitalize on generational growth opportunities in categories including self-driving vehicles, batteries, and robotics.