12 Best QQQ Stocks to Invest in Now

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9. Tesla Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

Tesla Inc. (NASDAQ:TSLA) is a leader in EVs and sustainable energy. It operates through Automotive and Energy Generation and Storage segments. It designs, manufactures, and sells EVs, solar energy systems, and energy storage solutions. It also provides services like supercharging, financing, and insurance.

The company is focused on AI in autonomous driving and robotics. On March 10, Morgan Stanley kept an Overweight rating on the stock with a $430 price target. The analyst sees the stock’s pullback from December highs as a buying opportunity, despite factors like poor sales data and negative sentiment. The company’s stock may rise due to the Austin robotaxi launch (which is unsupervised FSD/Full Self-Driving as a paid service prepared for June-August), new autonomous vehicle rules, and an Optimus AI/Humanoid demonstration.

The company’s autonomous driving and AI-related initiatives, which include its Optimus robot program, could eventually contribute 90% of the company’s valuation. The company believes Optimus can generate over $10 trillion in revenue. Tesla Inc. (NASDAQ:TSLA) is designing all components of Optimus from scratch. Internal plans call for building ~10,000 Optimus robots in 2025, with significant production ramp-up expected in subsequent years. Optimus training needs are expected to be at least 10x greater than those for autonomous vehicles.

Tesla Inc. (NASDAQ:TSLA) profitability comes from its energy segment growth, upcoming model launches, AI advancements, and improved delivery data. This reinforces investor confidence in its future. Baron Partners Fund stated the following regarding the company in its Q4 2024 investor letter:

“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.”

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