10 High-Valuation Stocks to Buy According to Billionaires

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1. Tesla, Inc. (NASDAQ:TSLA)

Forward P/E: 89.3

Number of Billionaire Investors: 21

Number of Hedge Fund Holders: 126

Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle (EV) manufacturer and clean energy company known for its innovative approach to sustainable transportation and energy solutions. It designs, manufactures, and sells electric vehicles, battery energy storage systems, solar products, and related services. It currently manufactures five different consumer vehicles: the Model 3, Y, S, X, and the Cybertruck. Its strong presence in EV technology, autonomous driving, and AI positions it as a tech-driven company rather than just an automaker.

Since the new U.S. president took office on January 20, Tesla Inc. (NASDAQ:TSLA) shares have dropped by as much as 50%. A key reason behind this decline has been investor concerns about CEO Elon Musk’s increasing involvement with the Department of Government Efficiency (DOGE), raising fears that it could be diverting his attention from Tesla. Additionally, declining sales and market volatility have added pressure on the stock.

Acknowledging these challenges, Morgan Stanley analyst Adam Jonas lowered his price target on Tesla Inc. (NASDAQ:TSLA) from $430 to $410 but maintained an Overweight rating in his March 21 report. He noted that while Tesla’s auto deliveries in 2024 have been weaker than expected, this does not alter the overall investment outlook. The analyst believes that Tesla’s current slowdown is part of a transition from being a pure-play automaker to a broader AI and robotics company. Despite the volatility and non-linear progress, he remains confident that 2025 will be a year where investors increasingly recognize Tesla Inc. (NASDAQ:TSLA)’s leadership in embodied AI, an area where he sees the company maintaining a strong competitive edge.

While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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