Why These 15 Big-Cap Stocks Are Plunging So Far in 2025

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1. Tesla Inc (NASDAQ:TSLA)

Number of Hedge Fund Holders In Q4 2024: 126

Tesla Inc (NASDAQ:TSLA) is an EV company, though Musk is trying to make it look more like an AI/robotics play. That is likely well over a decade away, given Optimus robots are reportedly remote-controlled at showcase events.

The stock is down significantly so far in 2025 as Tesla’s sales in China fell by 49.2% year-over-year in February 2025. This is Tesla’s second-largest market.

Moreover, European EV registrations for Tesla dropped 45% year-over-year in January 2025, even as overall EV registrations in the region rose by 37%.

Tesla has a solid position in the U.S., but that too could be in danger if EV subsidies are pulled back, In that case, Tesla’s margins would decline markedly.

Elon’s involvement in DOGE is also causing Tesla’s customer base to shrink.

The consensus price target of $315.33 implies 15.88% upside.

TSLA stock is down 32.64% year-to-date.

While we acknowledge the potential of 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.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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