12 Biggest Lithium Stocks to Buy According to Hedge Funds

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1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 99

Tesla, Inc. (NASDAQ:TSLA) specializes in electric vehicles and clean energy solutions. The company is renowned for its novel electric vehicle designs and production, as well as its position as a leading supplier of stationary battery energy storage systems for grid-scale and residential applications. Tesla, Inc. (NASDAQ:TSLA) recently announced a $1 billion investment in a lithium refinery in Texas to produce battery-grade lithium hydroxide in a sustainable manner. This facility is expected to produce 50 GWh per year, thus increasing battery supply while lowering costs.

Morgan Stanley reaffirmed its Overweight rating and $430 price target for TSLA on January 30. According to the firm’s analysis, Tesla, Inc. (NASDAQ:TSLA) is expanding beyond its core automotive focus to become a broader technology company with significant involvement in artificial intelligence and robotics. It’s expected that this shift will allow Tesla’s total addressable market (TAM) to include a number of new industries that aren’t accounted for in the financial models of many analysts and investors. Additionally, even though Tesla’s gross margin of 18.23% fell short of analyst expectations, the company’s 2024 revenue came in at a reported $97.15 billion.

While we acknowledge the potential of TSLA, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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 Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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