10 Best Stocks to Buy and Hold For 5 Years

8. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 85

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company specializing in producing electric cars and solar-integrated renewable energy solutions. The company is one of the largest EV manufacturers in the United States.

In the third quarter of 2024, Tesla, Inc. (NASDAQ:TSLA) logged revenue worth $25.18 billion, up by 8% year-over-year. Automotive revenues accounted for most of the revenue, at $20.02 billion. Overall, revenue was driven by increasing vehicle deliveries. Previously, Tesla, Inc. (NASDAQ:TSLA) launched a new lineup of electric vehicles 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.

Tesla, Inc. (NASDAQ:TSLA) boasts solid growth potential over the next few years. On October 28, John Murphy, senior automotive analyst at Bank of America, appeared in an interview on Yahoo Finance to share his stance on TSLA. He states that Tesla is at the “next level” of electric and autonomous vehicles. Murphy suggests that the company is witnessing growing gross margins which will be able to fund the future Tesla wants, potentially in the realms of self-driving and robotics. He adds that the company has a strong core and a solid “opportunity curve.” According to Murphy, he has “never seen a company like this before” and is pretty impressed with how the company is progressing, calling it a “real innovator.”

Tesla’s (NASDAQ:TSLA) investments in AI make autonomous driving a reality, contributing to its position on our list. Tesla is poised for significant growth in the coming years because of its growing emphasis on AI.

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.”