13 Best NASDAQ Stocks to Buy So Far in 2025

9. Tesla Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

Tesla Inc. (NASDAQ:TSLA) designs, manufactures, and sells EVs, along with energy generation and storage systems internationally. It operates in two segments, Automotive; and Energy Generation & Storage. The Automotive segment offers EVs, automotive regulatory credits, and vehicle insurance services. The other segment engages with solar energy generation and energy storage products.

RBC Capital Markets global autos analyst Tom Narayan recently lowered the company’s price target from $440 to $320. Narayan’s adjustment was a result of the increased competition in the FSD market. The analyst also revised his pricing forecast for Tesla Inc.’s (NASDAQ:TSLA) FSD and lowered it from $100 to $50 per month because he anticipates that autonomous driving technology could soon become standard and widely available.

However, the company’s autonomous driving and AI-related initiatives, such as the Optimus robot program, could potentially make up 90% of its total valuation. Optimus, in particular, is expected to bring over $10 trillion to the company in the long run. The company is designing all components for Optimus from scratch, to use it internally at its facilities in 2025. This means building around 10,000 units in a year. It’s also important to note that Tesla Inc. (NASDAQ:TSLA) anticipates Optimus training needs to be ten times greater than autonomous vehicles.

JDP Capital Management is positive on Tesla Inc. (NASDAQ:TSLA) due to the potential of its FSD and Optimus technologies. It stated the following regarding the company in its Q4 2024 investor letter:

“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)