10 Best Stocks to Buy and Hold For The Next Decade

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 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, indicating its reliance on the industry. Its energy segment, logged $3 billion in sales, doubling year-over-year. The company avoided 20.4 million metric tons of CO2 with its initiatives in 2023, equivalent to 48 billion miles of driving.

During the second quarter of 2024, 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.

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 stocks to buy and hold for a decade. 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.

Tesla is poised for significant growth in the coming years because of its growing emphasis on AI and its stance on sustainability. Sustainability is a rapidly growing concern for economies and Tesla is on track to spearhead the movement.

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.”