ARK Invest Stock Portfolio: Top 10 Stock Picks for 2024

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1. Tesla, Inc. (NASDAQ:TSLA)

Stake Value as of Q3 2024: $1,200,562,888

Tesla, Inc. (NASDAQ:TSLA) is an American automotive and clean energy company, headquartered in Austin, Texas. It is a pioneer in the EV industry and has significantly contributed to the global shift toward sustainable transportation through its electric cars.

The company’s share price has surged 44% since Trump’s election victory, which has lifted Tesla back into the elite club of companies having a market cap of $1 trillion. The automotive company has added a full third in capitalization since Election Day, according to global business magazine, Fortune.

Tesla, Inc. (NASDAQ:TSLA)’s impressive performance during the third quarter of 2024, driven by strong growth in vehicle deliveries, has also raised investor optimism. Revenue in Q3 increased 8% year-over-year to reach a total of $25.18 billion, falling just shy of expectations of $25.37 billion. However, it beat earnings expectations, logging an EPS of 72 cents against forecasts of 58 cents.

Tesla, Inc. (NASDAQ:TSLA) experienced improved profit margins during the quarter, fueled by automotive regulatory credit revenue of $739 million. Automakers are mandated to obtain a certain amount of regulatory credits every year and often purchase them from companies like Tesla if they fail to meet the target themselves. Since it only manufactures electric vehicles, Tesla, Inc. (NASDAQ:TSLA) has excess credits.

During the earnings call, Elon Musk mentioned that he expects vehicle growth between 20% and 30% next year, due to the advent of autonomy and the lower cost of vehicles. He was also confident about Cybercab reaching volume production in 2026, aiming for at least 2 million units a year. Moreover, driverless ride-hailing services are planned for launch in California and Texas next year.

Tesla is the top pick from the ARK Invest portfolio, with investments valued at $1.2 billion, representing nearly 11% of ARK’s holdings.

Overall, TSLA ranks first among the ARK Invest Stock Portfolio: Top 10 Stock Picks for 2024. While we acknowledge the potential of automotive companies, our conviction lies in the belief that 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: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

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