10 Best Future Stocks For The Long-Term

5. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 85

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that specializes in the production of electric cars and solar-integrated renewable energy solutions. The company is one of the largest EV manufacturers and accounted for nearly 50% of EV sales between April and June, in the United States.

Electric vehicles accounted for 84% of Tesla’s revenue in the second quarter of 2024, pointing to its reliance on the industry. Its energy segment, logged $3 billion in sales, doubling year-over-year. During the second quarter of 2024, Tesla, Inc. (NASDAQ:TSLA) launched a new lineup, to boost the launch of new models. Its new lineup and extensive production line will deliver over 3 million vehicles of capacity when optimized fully.

Despite sluggish growth in its electric vehicle segment, the company’s investments in AI make autonomous driving a reality, contributing to its position as one of the best future stocks for the long term. Its FSD v12 vehicle is purely AI-based self-driving and has driven 300 billion miles so far. In addition to AI-based self-driving and AI training chips, the company also made headlines for its Tesla Bot, a humanoid autonomous robot capable of performing miscellaneous tasks.

Overall, TSLA was held by 85 hedge funds at the close of Q2 2024 with total stakes amounting to $4.97 billion. As of June 30, Citadel Investment Group was the largest shareholder.

Baron Funds mentioned Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:

“As discussed in the Fund’s prior shareholder letter, the fears about Tesla’s products were misplaced. Instead of the company being exclusively dependent on limited vehicle models and software advancement, the company announced it will more rapidly introduce products that appeal to a wider audience. It also demonstrated that its price reductions were the result of efficiencies rather than only to spur demand. Margins exceeded expectations. And the company’s integration of its hardware with proprietary AI software should facilitate full self-driving capabilities and subsequent new revenue streams. This integration of hardware with software creates a dynamic growth company as it more fully explores its potential with Optimus, humanoid robotics. The combination of these catalysts resulted in Tesla’s stock increasing meaningfully and rapidly in the second half of the quarter. This stock price momentum has continued into the next period.”