10 Best Stocks to Invest in for the Next 10 Years

5. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells EVs, and energy generation and storage systems. On March 6, TD Cowen upgraded the company’s stock to “Buy” from “Hold” with a price target of $388. As per the firm, the potential catalysts include new EV launches, deployment of the autonomous vehicle technology without driver supervision, along with advancements in robotics. Tesla, Inc. (NASDAQ:TSLA)’s investments in AI and autonomous driving technology can create substantial value over and above its core automotive business.

Tesla, Inc. (NASDAQ:TSLA) plans to roll out a robotaxi service and start selling humanoid robots. Notably, these are expected to act as significant growth opportunities over the upcoming decade. The Robotaxi service has the potential to revolutionize urban transportation and offer Tesla, Inc. (NASDAQ:TSLA) with a lucrative new business model. The company’s autonomous driving strategy is beyond self-driving cars. Its focus revolves around establishing an AI-powered ecosystem spanning energy, transportation, software, and robotics. Over the upcoming decade, such investments can transform the giant into an AI-first technology company possessing several high-margin revenue sources.

Baron Funds, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles, related software and components, and solar and energy storage products. Shares rose on growth in the energy segment, the promise of new model launches in 2025, and increasing investor confidence in Tesla’s AI initiatives. Despite macroeconomic challenges, delivery data in major markets like China have shown considerable improvement. The energy and automotive segments demonstrated stronger-than-expected profitability. Tesla also expanded its advanced computing center in Texas, released improved version of its software-enhanced driving solution, and is set to launch new mass market vehicles years after the initial rollouts of Models 3 and Y. Expectations of deregulation under the incoming administration point to the potential acceleration of new technology rollouts, which could enhance Tesla’s leadership position in real world AI and bolster investor confidence that Tesla will benefit from these large and attractive growth opportunities.”