We recently published a list of Top 10 AI Stocks Buzzing on Latest News. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other top AI stocks buzzing on latest news.
Investors are continuing to assess the impact of new LLMs in the AI industry. X. Eyeé, CEO of AI consulting firm Malo Santo and senior policy advisor at the Goldman School of Public Policy at UC Berkeley, said in a recent program on CNBC that the DeepSeek breakthrough in China has changed the dynamics of the AI race. She believes AI development is no longer limited to the companies with the “largest pockets.”
“I mean, the world has long looked to the United States to be the leader in artificial intelligence, but these recent model releases from China have demonstrated its ability to leapfrog and catch up with us tech giants and achieve groundbreaking results without the luxury of advanced hardware, which is ultimately challenging everything that we thought was necessary for innovation in the AI space. See, what DeepSeek represents is that AI innovation isn’t necessarily driven by the companies with the largest pockets or the fanciest hardware, but that collaborative development approaches can actually end up providing market-leading technologies.”
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For this article, we picked 10 AI stocks making the biggest moves these days. With each stock we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Investors: 99
Ed Mills, Washington policy analyst at Raymond James, said in a program on CNBC that Elon Musk might go “too far” with his powers and end up getting a “no” from President Donald Trump.
“Elon Musk is going after individual senators, going after individual members, but there’s just not a lot of play there. So to me, if there is one pressure point that I am truly looking at, it’s if he goes too far—if he takes something and makes it very difficult for a member of Congress to win reelection. They just might be a “no,” and then Trump’s agenda is a “no.””
The analyst talked about Elon Musk’s attitude about business interests and what that might bring for Tesla, Inc. (NASDAQ:TSLA) shareholders:
“I do think when you look at this, it’s exceptionally unusual that you have the President of the United States and Elon Musk, both having publicly traded companies that can be specifically targeted. As it relates to Elon Musk, you had the story about Starlink in Ottawa, but also, if there are direct tariffs, I don’t think that matters as much to Elon as it would to a shareholder. Elon has certainly kind of shrugged off the response to the SpaceX contract being canceled—that’s just kind of how he does business. His wealth is so vast that what would be painful to a Tesla, Inc. (NASDAQ:TSLA) shareholder is not the same level of pain for Elon.”
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) detracted from performance in the fourth quarter of 2024. The stock had a strong performance in the fourth quarter, and our portfolio has an underweight position relative to the benchmark weight. Tesla reported better-than-expected third quarter earnings in late October. Given the CEO of Tesla’s position as an advisor to President-elect Trump, performance in the shares accelerated following the U.S. presidential election. There are expectations that regulation for autonomous driving will be centralized with the federal government. There have been reports in the press that tax incentives for electric vehicles will be eliminated or reduced, which could have a negative impact on Tesla’s subscale competitors.”
Overall, TSLA ranks 7th on our list of top AI stocks buzzing on latest news. While we acknowledge the potential of TSLA, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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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Disclosure: None. This article is originally published at Insider Monkey.