We recently published a list of the 10 Best Robotics Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against the other robotics stocks held by billionaires.
Robotics Market Outlook
The robotics industry has grown modestly over the past few years. Robotic companies are growing faster than ever, driven by advancements in technology since the emergence of AI. Especially, humanoid robots are rapidly growing in the global market, driven by AI. According to Goldman Sachs’ research, the total addressable market for humanoid robots is projected to cross $38 billion by 2035, a massive upgrade from its previous forecast of $6 billion in 2023.
READ ALSO: 10 Cheap Robotics Stocks To Invest In Now
Morgan Stanley expects the humanoid robot units to reach 40,000 by 2030 and cross 63 million by 2050. Citigroup is even more bullish, anticipating a $7 trillion humanoid robot market by 2050, with 1.19 billion humanoid robots in operation. Adam Jonas from Morgan Stanley expects humanoid robots to be a multi-decade, trillion-dollar opportunity as the adoption could accelerate faster for autonomous vehicles.
In 2023, the new World Robotics report noted around 4.28 million units operating in factories globally, growing by 10% compared to 2022. Annual installations surpassed half a million units for the third consecutive year. Asia remains the hot region for robots, with 70% of all newly deployed robots in 2023 installed in Asia. China, Japan, South Korea, and India are some of the largest robotics markets in the world. China leads the market, recording 276,288 industrial robots installed in 2023, representing 51% of the global installations. The U.S. has the largest robotics market in the region, accounting for 68% of installations in the Americas in 2023.
The U.S. stock market has been under pressure due to tariffs as the broader market has plunged over 4.50% year-to-date. At the same time, Global X Robotics & Artificial Intelligence ETF (BOTZ) and Robo Global Robotics and Automation Index ETF (ROBO), which returned over 11% in 2024, have dropped nearly 10% and 7% year-to-date, respectively. Despite the market facing political headwinds, robotics stocks hold great promise, considering the rising demand for humanoids and automation systems.
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Our Methodology
To compile our list of the best robotics stocks to buy according to billionaires, we looked for the robotics and automation companies widely held by billionaires. Data for the billionaire holders for each stock was taken from Insider Monkey’s database, updated as of Q4 2024. Finally, the 10 best robotics stocks to buy were ranked in ascending order based on the billionaire investors holding stakes in them. We have also mentioned the number of hedge funds holding each stock as of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Tesla, Inc. (NASDAQ:TSLA)
No. of Billionaire Investors: 21
No. of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) is one of the world’s leading manufacturers of electric vehicles (EVs). However, investors are more focused on its products, such as its full self-driving software (FSD), Cybercab robotaxi, and Optimus robot, which could each be trillion-dollar platforms in the future.
Tesla, Inc. (NASDAQ:TSLA) has suffered a drop of 1% year-over-year in deliveries in FY2024. In 2024, Cathie Wood’s Ark Invest Management projected TSLA shares to surge to $2,600 by 2029 based on products like FSD and the Cybercab. Ark’s financial models suggest that Tesla’s EV sales will only represent 26% of the company’s revenue by 2029, with autonomous ride-hailing making up the majority instead. Tesla’s Cybercab is a fully autonomous robotaxi that will run entirely on its FSD software.
On March 21, Wedbush analyst Daniel Ives reiterated an Outperform rating on TSLA shares, keeping a price target of $550. Ives is bullish on TSLA over its upcoming Cybercab, full self-driving expansion, and a lower-cost vehicle launch later this year.
“Musk did a very good job in our opinion discussing the Tesla long-term strategic vision, autonomous, robotics, and showing leadership at a time it was very needed for the Tesla story,” Wedbush analysts wrote.
Overall TSLA ranks 1st on our list of the robotics stocks to buy according to billionaires. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that 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.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
