1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders as of Q4: 126
Ark Invest’s Equity Stake: $1.33 Billion
Tesla, Inc. (NASDAQ:TSLA)’s Q4 2024 earnings report presented mixed results, with net sales rising 2.15% year-over-year to $25.71 billion, while operating profit dropped 23.3% to $1.58 billion. Earnings per share came in at $0.73, missing analyst expectations by 4.8%. Despite a stock rally driven by speculation over potential policy benefits under President Trump’s administration, Tesla faced substantial challenges, including its first annual decline in vehicle deliveries, which totaled 1.8 million units. To counter slowing demand, the company introduced aggressive price cuts, particularly in North America and China.
While Elon Musk remains committed to advancing autonomy and robotics, Tesla, Inc. (NASDAQ:TSLA) continues to lag behind competitors like Waymo, WeRide, and Pony.ai in the robotaxi market. Musk has announced plans to launch “unsupervised” Full Self-Driving (FSD) in Austin by June and hinted at potential licensing deals, but concerns remain over the technology’s readiness. However, the company’s energy division was a strong performer, generating $3.06 billion in revenue, marking an impressive 113% increase from the previous year.
On March 10, 2025, Tesla, Inc. (NASDAQ:TSLA) shares plummeted by over 15% to $222, marking their lowest closing price since October 23 and their worst percentage loss since 2020. Tesla stock has fallen 53% from its December peak and 12% since Election Day, with its market capitalization shrinking by nearly $800 billion. This drop contributed to a broader market decline, with the tech-heavy Nasdaq Composite slipping 4% amid concerns over Trump’s economic policies. Despite Elon Musk’s $288 million donation to Trump and GOP election efforts, Tesla, Inc. (NASDAQ:TSLA) faces mounting challenges, including Trump’s tariffs affecting supply chains and weaker sales in China and Europe. Analysts warn that Musk’s political affiliations are eroding Tesla’s brand reputation, further exacerbating the company’s struggles in its second-largest market and beyond.
Overall, Tesla, Inc. (NASDAQ:TSLA) ranks first on our list of the top 10 stocks to buy according to Ark Invest. While we acknowledge the potential for TSLA as an investment, our conviction lies in the belief that some 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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