7 Best Car Stocks To Invest In Now

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1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 85

Tesla, Inc. (NASDAQ:TSLA) is Elon Musk’s famed EV manufacturer based in Austin, Texas.

These days, the hype around Tesla, Inc. (NASDAQ:TSLA) is mostly concerning its robotaxi business, which many investors like Cathie Wood expect to be a game changer for the EV company. Wood expects the robotaxi business to be incredibly successful for Tesla, Inc. (NASDAQ:TSLA), which is instilling a greater sense of confidence in other investors, especially since another robotaxi business, Waymo, has already had some success and is operating quite well with 700 autonomous vehicles already being on the roads.

Tesla, Inc. (NASDAQ:TSLA) also has a strong history of growth. Over the past five years, the company has increased revenue by 30.8%. Analysts are also bullish on the stock, with Deutsche Bank’s Edison Yu placing a $295 price target on Tesla, Inc. (NASDAQ:TSLA) on September 10 – one of the highest valuations on Wall Street right now. The primary reason for this high valuation is the fact that Tesla, Inc. (NASDAQ:TSLA) has other business segments that are complementary to its EV business, such as its network of EV chargers and energy storage and robotics businesses.

In total, 85 hedge funds were long Tesla, Inc. (NASDAQ:TSLA) in the second quarter, with a total stake value of $4.9 billion.

While TSLA is an exceptional investment, we believe that AI stocks hold promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than the ones mentioned in our list but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

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