10 Most Active US Stocks to Buy According to Hedge Funds

3. Tesla Inc. (NASDAQ:TSLA)

No of hedge fund holders: 126

Tesla Inc. (NASDAQ:TSLA) is a leading innovator in electric vehicles and sustainable energy solutions. It designs, manufactures, and sells high-performance EVs and energy generation and storage systems.

Tesla Inc. (NASDAQ:TSLA)’s long-anticipated affordable EV is said to enter production by June 2025. It marks a crucial moment for the company as it battles slowing EV adoption, intensifying competition in China, and a volatile stock performance. Analysts across Wall Street view this launch as a “necessity” rather than a luxury. Wedbush’s Dan Ives calls it the “missing catalyst” Tesla needs to reignite demand. The sub-$30,000 model could expand the company’s reach into price-sensitive markets, including India, while countering the dominance of low-cost Chinese rivals like BYD.

Tesla Inc. (NASDAQ:TSLA)’s Q4 2024 earnings fell short of analyst expectations, with revenue reaching $25.71 billion, a modest 2% YoY increase, but below the expected $27.26 billion. Automotive revenue dropped 8% YoY to $19.8 billion. Operating income declined 23% YoY to $1.6 billion, while net income plunged 71% YoY to $2.32 billion, largely due to a one-time tax benefit boosting last year’s numbers. Tesla’s energy segment was a bright spot, with revenue surging 113% YoY to $3.06 billion.