10 Best Environmental Stocks to Buy

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1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 99

As a global leader in the electric vehicles (EV) market, Tesla, Inc. (NASDAQ:TSLA) is known to revolutionize the sustainable transport sector, through constant innovation in clean energy transport offerings. The company produces electric cars and energy storage solutions that are the need of the hour to overhaul the currently fuel dependent transport industry. In 2024, Tesla’s Model Y achieved a significant milestone by becoming the best-selling car globally, positioning it as a leader in eco-friendly vehicles. The company unveiled the new Model 3 Performance, which leverages the company’s latest manufacturing and engineering capabilities to provide a high-performance yet sustainable daily driving experience.

The Tesla, Inc. (NASDAQ:TSLA) stock has constantly been on watchlists and has shown a 100% increase in 1-year value. Though the recent 60% revenue plummets in Germany are causing concern, the announcements for the launch of Robotaxi’s or unsupervised full self-driving (FSD) as a paid service in the US market will likely cause some interesting variations in the EV market. CEO Elon Musk’s Q4 Earnings call has indicated an exciting 2026 and 2027 for the company. As the company is expanding beyond the EV market and tapping into AI and robotics, the market expansion still keeps it on the list watch, despite recent stock slowdowns. 2024 revenue has met the $97 billion mark as expected.

Looking ahead, analysts predict that Tesla, Inc. (NASDAQ:TSLA)’s performance in the autonomous vehicle sector, particularly its robotaxi initiative, will drive the company’s stock in 2025. Even with the ongoing challenges in its core automotive business, involvement in AI presents significant opportunities for growth

Tesla, Inc. (NASDAQ:TSLA)’s energetic strategy and constant focus on innovations make it one of the most sought-after environment segment companies, and the best environmental stock to buy.

Overall Tesla, Inc. (NASDAQ:TSLA) ranks first on our list of the best environmental stocks. While we acknowledge the potential for TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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