12 Best WallStreetBets Stocks To Buy According to Hedge Funds

5. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

Morningstar believes that Tesla, Inc. (NASDAQ:TSLA)’s moat stems from intangible assets and cost advantage. The company’s robust brand cachet as a luxury automaker fetches premium pricing, while, at the same time, its EV manufacturing expertise enables it to make vehicles cheaper than the competitors, says Morningstar. Tesla, Inc. (NASDAQ:TSLA) can disrupt the automotive and power generation industries, thanks to its technology for EVs, batteries, AVs, and solar generation systems. Furthermore, the company’s full self-driving software can result in increased profits over the upcoming years as the technology improves.

Tesla, Inc. (NASDAQ:TSLA)’s investments in AI and robotics can result in new markets and revenue streams. Its work on embodied AI, which includes AVs and humanoid robots, places it well at the forefront of a technological revolution that can revolutionize multiple industries. Also, Tesla, Inc. (NASDAQ:TSLA)’s significant amount of real-world driving data provides it a strong competitive advantage when it comes to developing and refining autonomous driving technologies. JDP Capital Management, an investment management company, published its Q4 2024 investor letter. Here is what the fund said:

“Tesla, Inc. (NASDAQ:TSLA) is new core position that I wrote about in 2024 Half Year Letter. The stock was up 115% in 2024. We benefited from the June 2024 timing of our purchase, buying after the stock had declined about 30% in the first part of the year.

We repurchased TSLA at a time when the market had [again] become overly bearish based on slowing vehicle orders despite the company having just achieved a breakthrough in Full Self Driving (FSD v12). If you haven’t had a chance to experience the most recent Full Self Driving software (FSD 13.3) I suggest you try it for yourself. If you’ve had a Tesla for a while, you know that the trajectory of FSD improvement has been nothing less than astounding.

It has become clearer to me that Tesla’s leadership position in the infrastructure layer underpinning mega-trends in robotics, smart vehicles and battery storage will unlock earnings growth that we can ride for years. Similar to AWS or the iPhone, Full-Self-Driving and Optimus will enable new business models to be built across a wide range of industries over time…” (Click here to read the full text)