Top 10 Stocks to Buy According to Adage Capital Management

7. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders as of Q4: 126

Adage Capital Management’s Equity Stake: $1.04 Billion 

Tesla, Inc. (NASDAQ:TSLA) is facing a rough start to 2025, with its stock plummeting over 15% on March 10, bringing its total losses for the year to more than 40%. The steep decline erased approximately $127 billion from the company’s market value, wiping out all the gains it had made since Donald Trump’s election victory in November. Meanwhile, Chinese EV competitors like BYD and Xpeng saw stock gains, with Xpeng even announcing plans to mass-produce a flying car by 2026. Tesla, Inc. (NASDAQ:TSLA) continues to struggle in China, where its February sales plunged 49% year-over-year, partially due to production halts ahead of a Model Y update. In contrast, BYD’s sales surged 161%, closing in on Tesla’s position as the world’s largest EV seller.

Elon Musk’s standing in China, once bolstered by his early investments in the country’s EV sector and his strong relationship with Chinese officials, may be weakening. His recent political statements, including controversial claims about COVID-19, have sparked backlash on Chinese social media. The China Passenger Car Association even issued a rare comment, warning that Musk’s political ties could hurt Tesla, Inc. (NASDAQ:TSLA)’s sales. Additionally, his support for Trump is damaging the company’s reputation in Europe, with declining sales in markets like Germany and France. While Chinese tech stocks are surging due to new AI breakthroughs and government backing, Tesla, like many U.S. tech companies, is suffering from market instability, tariffs, and economic uncertainty under the new administration.

In its most recent quarterly report, Tesla, Inc. (NASDAQ:TSLA) achieved mixed financial results for Q4 2024, with net sales increasing 2.15% year-over-year to $25.71 billion. However, operating profit declined significantly by 23.3% to $1.58 billion, while earnings per share fell short of expectations at $0.73, missing analyst forecasts by 4.8%. These figures highlight the company’s ongoing financial pressures, as it navigates production challenges and heightened competition in the global EV market.