11 Best Reddit Stocks to Invest In

4. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

Tesla, Inc. (NASDAQ:TSLA) is engaged in designing, developing, manufacturing, leasing, and selling EVs, and energy generation and storage systems. Cowen analyst Michaeli gave a “Buy” rating on the company’s stock, setting its price objective of $388. While there are challenges, the list of game-changing level catalysts throughout EV, AV and robotics remains strong enough to tilt risk/reward favorably. Elsewhere, Morgan Stanley’s Adam Jonas remains optimistic about Tesla, Inc. (NASDAQ:TSLA)’s potential in the evolving landscape of AI and robotics. The analyst opines that this can offset its struggles in the EV market.

Reuters reported that Tesla, Inc. (NASDAQ:TSLA) has been fetching a valuation far above that of the world’s leading automotive and technology firms, considering the standard financial metrics. This is because several investors and analysts believe that Tesla, Inc. (NASDAQ:TSLA) is not really a car company at all, but an AI-pioneer that can unleash a revolution in robotaxis and humanoid robots. The company continues to focus on innovation and product development in a bid to maintain a competitive edge.

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.”