We recently published a list of 10 Best Stocks to Buy and Hold For 2 Years. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other best stocks to buy and hold for 2 years.
Will The Tech Stocks Continue to Rally?
On March 27, CNBC reported that the stocks dipped on Wednesday, led by the technology sector. The S&P 500 dipped around 1.12%, followed by the Dow Jones, which fell by 132.71 points. More notably, the technology-dominated NASDAQ dropped by 2.40% closing at 17,899.01 points. The drop in the stock market was further aggravated by the White House’s announcement of new tariffs on auto imports.
To talk about the future of technology and artificial intelligence Doug Clinton, Intelligent Alpha founder, joined CNBC for an interview on March 29. He mentioned that it has been more than a month now that the big technology names, especially artificial intelligence companies, are not performing so well. However, despite the recent dip, Clinton maintained his bullish sentiment for the sector. He pointed out that if we zoom out of the current situation and look at the sector from two to three years from today, we will still see AI stocks rally and large capital expenditure bills. Clinton pointed out that if you are a believer in AI trade it is important to remember that the market has had more than two years of absolutely no turbulence. This period of stability started from the end of 2022 to the beginning of 2025. Clinton categorized the current dip as the first real challenge for the AI trade. Referencing history, he pointed to the Dot Com era, when the Dot Com trade faced its first real challenge. The turbulence took 200 days to reach a new NASDAQ high back then. He clarified that this does not mean that the current turbulence will last 6 months, however, if someone believes in the AI trade then they need to be patient through the dip.
While talking about the valuations, Clinton highlighted that the question is about the kind of risks an investor wants to take during the trade. He noted that investors can choose to trade during the turbulence by exiting the market at high times, however, the risk is that the AI stocks can rise 20% to 30% in no time, making it difficult for investors to get back in. Clinton pointed out that he is looking at this trade from a two to three years lens. He believes that this will give him enough exposure and will also reduce the risk of missing out on the bigger picture.
Our Methodology
To compile the list of 10 best stocks to buy and hold for 2 years we sifted through financial media reports. From these sources, we shortlisted stocks with more than 20% sales growth over the past 3 years. Next, we ranked these stocks in ascending order of the number of hedge fund holders, sourced from Insider Monkey’s Q4 2024 database.
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).
Is Tesla, Inc. (NASDAQ:TSLA) The Best Stock to Buy and Hold for 2 Years?
Tesla, Inc. (NASDAQ:TSLA) is a renowned designer and manufacturer of electric vehicles and energy generation and storage systems. The company operates through two main segments including the Automotive Segment and Energy Generation and Storage Segment. While the company has a range of electric vehicles in the market, it is also working on developing fully autonomous vehicles.
Nightview Capital mentioned Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter. The fund believes that the company is a market leader in AI technology, however, it continues to be underestimated by the market. Nightview Capital mentioned that the company after a relatively flat period of growth is on the verge of the next S-curve, led by its achievements in autonomous driving, energy storage, and electric vehicles. The fund noted that its leadership in Full Self-Driving (FSD) is one of the key competitive advantages. Moreover, the energy storage potential is also a hidden gem that the fund believes has the potential to become a trillion-dollar business.
During the fiscal fourth quarter of 2024, Tesla, Inc. (NASDAQ:TSLA) produced 459,445 electric vehicles and delivered 495,570. While the total Automotive Segment revenue still declined by 8% year-over-year, the Energy Storage segment revenue grew 113% during the same time. Management noted that they believe its Model Y will again become the best-selling vehicle as they have improved it with the new launch. Tesla, Inc. (NASDAQ:TSLA) is one of the best stocks to buy and hold for 2 years.
Nightview Capital stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“Artificial intelligence is no longer just a promise—it’s becoming the defining force of the modern economy. From self-driving vehicles to humanoid robotics, intelligent systems are not only enhancing efficiency but unlocking entirely new markets. These systems process and learn from vast amounts of real-world data, iterating and improving at a scale no human could achieve.
Overall, TSLA ranks 5th on our list of best stocks to buy and hold for 2 years. 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.
