10 Best Machine Learning Stocks to Buy Now

6. Tesla Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

Tesla Inc. (NASDAQ:TSLA) is an EVs, and energy generation & storage systems company. Its Automotive segment offers EVs, supercharging, and vehicle insurance services. The Energy Generation and Storage segment designs, manufactures, and installs solar products. The company uses machine learning for autonomous driving, as well as for analyzing the data collected from its vast vehicle fleet.

The company’s FSD and Optimus are currently driving its growth, with Optimus expected to generate over $10 trillion for the company in the long term. The unsupervised rollout of FSD is planned for June 2025 in the Austin, Texas facility. Wider US deployment is expected by the end of 2025. While internal Optimus rollout is planned for 2025, its external sales will begin in 2026. The company aims to increase production from 1000 units/month to 10,000 units/month after external sales begin. The cost will potentially come down to $20,000 or lower when the production capacity is 1 million units/year.

On March 21, Morgan Stanley lowered the price target for Tesla Inc. (NASDAQ:TSLA) from $430 to $410, while keeping an Overweight rating. Analysts think that despite falling short of anticipated performance, the company has an overarching thesis. They believe that the company’s transition from an automotive-focused business to a broader AI and robotics business is hurting its financials in the short run, but are setting the company up for growth potential ahead.

Nightview Capital stated the following regarding Tesla Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter, viewing the company as a leader in real-world AI:

“Artificial intelligence is no longer just a promise—it’s becoming the defining force of the modern economy. From self-driving vehicles to humanoid robotics, intelligent systems are not only enhancing efficiency but unlocking entirely new markets. These systems process and learn from vast amounts of real-world data, iterating and improving at a scale no human could achieve.

In our view, this isn’t just innovation; it’s exponential evolution. Companies leading the AI revolution are building formidable data moats, making it nearly impossible for latecomers to compete. Every mile driven by an autonomous vehicle, every task completed by an industrial robot—these actions feed a cycle of continuous improvement.

Industries like transportation, healthcare, and logistics are on the brink of massive disruption, and we believe this is a pivotal moment.

Tesla, Inc. (NASDAQ:TSLA): Core Opportunity: As highlighted in our 3Q investor letter, we believe Tesla’s leadership in real-world AI continues to be underestimated by the market. After a period of relatively flat growth, we see Tesla at the cusp of the next S-curve of transformation, driven by advancements in autonomous driving, energy storage, and electric vehicles. These multi-trillion-dollar markets offer Tesla a unique, integrated growth trajectory unmatched by competitors…” (Click here to read the full text)