5. Tesla, Inc. (NASDAQ:TSLA)
3-Years Sales Growth: 21.98%
Number of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) is a renowned designer and manufacturer of electric vehicles and energy generation and storage systems. The company operates through two main segments including the Automotive Segment and Energy Generation and Storage Segment. While the company has a range of electric vehicles in the market, it is also working on developing fully autonomous vehicles.
Nightview Capital mentioned Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter. The fund believes that the company is a market leader in AI technology, however, it continues to be underestimated by the market. Nightview Capital mentioned that the company after a relatively flat period of growth is on the verge of the next S-curve, led by its achievements in autonomous driving, energy storage, and electric vehicles. The fund noted that its leadership in Full Self-Driving (FSD) is one of the key competitive advantages. Moreover, the energy storage potential is also a hidden gem that the fund believes has the potential to become a trillion-dollar business.
During the fiscal fourth quarter of 2024, Tesla, Inc. (NASDAQ:TSLA) produced 459,445 electric vehicles and delivered 495,570. While the total Automotive Segment revenue still declined by 8% year-over-year, the Energy Storage segment revenue grew 113% during the same time. Management noted that they believe its Model Y will again become the best-selling vehicle as they have improved it with the new launch. Tesla, Inc. (NASDAQ:TSLA) is one of the best stocks to buy and hold for 2 years.
Nightview Capital stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“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)
