1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Investors in Q1 2024: 74
Tesla, Inc. (NASDAQ:TSLA) is primarily an EV company as it earns most of its revenue from this industry. However, the key to its success in the EV industry is Tesla, Inc. (NASDAQ:TSLA)’s ability to establish a brand new manufacturing ecosystem to make a new product kind is also at the heart of its humanoid robot plans. Tesla, Inc. (NASDAQ:TSLA)’s humanoid robot is called Optimus, and its CEO Elon Musk hopes to bring down its costs significantly to sell the product at scale to generate up to $1 trillion in annual revenue at some point in the future. The firm’s manufacturing experience provides it with key advantages to setting up a robot making supply chain and equipment, which, when coupled with Tesla, Inc. (NASDAQ:TSLA)’s assisted driving platform’s reliance on machine learning and visual sensing, can help it in launching a new product. At the same time, should investors perceive that Tesla, Inc. (NASDAQ:TSLA) is distracted and shifting from its bread and butter EVs, then the stock can suffer.
Tesla, Inc. (NASDAQ:TSLA)’s Elon Musk’s optimism for Optimus was evident during its Q2 2024 earnings call. Here is what he said:
“Yes, I mean, as I’ve said a few times, I think the long-term value of Optimus will exceed that of everything else that Tesla combined. So, it’s simply — just simply consider the usefulness utility of a humanoid robot that can do pretty much anything you ask of it. I think everyone on earth is going to want one. There’s 8 billion people on earth, so it’s 8 billion right there. Then you’ve got, all of the industrial uses, which is probably at least as much, if not way more. So I suspect that the long-term demand for general purpose humanoid robots is in excess of 20 billion units. And Tesla is — that has the most advanced humanoid robot in the world, and is also very good at manufacturing, which these other companies are not.
And we’ve got a lot of experience — with the most experienced with the world leaders in real world AI. So we have all of the ingredients. I think we are unique in having all of the ingredients necessary for large scale, high utility, generalized humanoid robots. That’s why my rough estimate long-term is in accordance with the ARK [ph] Invest analysis of market cap on the order of $5 trillion for — maybe more for autonomous transport, and it’s several times that number for general purpose humanoid robots. I mean, at that point, I’m not sure what money even means, but in the benign AI scenario, we are headed for an age of abundance where there is no shortage of goods and services. Anyone can have pretty much anything they want. It’s a wild — very wild future we’re heading for.”
Is it really a surprise that TSLA leads our list of humanoid robot stocks? But our conviction lies in the belief that some 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.
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