We recently published a list of 12 Most Buzzing Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other most buzzing stocks to buy according to hedge funds.
Economist Expects Prices to Rise in 2025
Data for the gross domestic product (GDP) in the fourth quarter of 2024 came out at 2.3%, slightly under economist expectations of 2.6%. On January 31, Lauren Saidel-Baker, an economist at ITR Economics, appeared in an interview on Yahoo Finance to share her outlook on the economy ahead of 2025.
Baker suggested that the economy is growing slower, which is rather a normalization of the economy and, therefore a very normal circumstance. She added that the economy is still feeling the ripple effects of the pandemic and we are now finally seeing the economy getting back to its “feat.” Baker also shared her optimistic approach towards the economy suggesting that the fundamentals point towards stable economic growth. She added that most of the growth has been driven by the consumer, meaning that the average consumer in the United States is strong and has showcased resilience.
On the flip side, the economist did share concern over government spending, exceeding its means, which has been a “long-going problem” in her opinion. Baker also shed light that government spending beyond its means may spiral in the very near term, especially with relatively higher interest rates pushing a much larger debt burden.
She highlighted that it is very important for individuals to read the economy through the noise. She added that the market has heard a lot of noise about the impending tariffs and the supposed growers and shrinkers of the economy, which she believes risk higher inflation rather than economic growth. She emphasized that there is no optimal number at which the economy is supposed to grow, and the economy is likely expected to operate in waves.
Baker believes that the economy may grow between 2-3% by the end of the year, and expects to see a slight acceleration by 2026. She also added that while the consumer is feeling higher prices, the general trend is in fact “disinflation,” which means a positive rate of inflation but slightly lower. She explained that while the consumer is bearing the brunt of higher prices, the prices are not rising fast enough to be a concern. She also added that while she does expect prices to rise further, the balancing act of “disinflation” may be good news for wages.
The consumer continues to show resilience towards the volatile and uncertain economic conditions, which is reflected in the performance of the stock market.
Our Methodology
To compile our list, we sifted through Yahoo Finance’s list of stocks that are experiencing high trading volumes. We looked at the analyst and investor sentiment for each stock and narrowed down our selection to 12 stocks that were the most popular among elite hedge funds. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024.
Note: All price/volume data is as of January 31, 2025.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Is Tesla, Inc. (TSLA) the Most Buzzing Stock to Buy According to Hedge Funds?
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company specializing in producing electric cars and solar-integrated renewable energy solutions. In the fourth quarter of 2024, the company produced more than 459,000 vehicles and delivered over 495,000, a record number for the company. Based on the Q4 results, the company expects Model Y to be its best-selling vehicle for the full fiscal year of 2024. In addition to that, to make its pricing model more affordable, TSLA has worked tirelessly during the year to reduce the cost of goods sold per vehicle, bringing it down to under $35,000.
On January 30, analyst firm Roth MKM, raised the price target for Tesla, Inc. (NASDAQ:TSLA) from $380 to $450, keeping a buy rating on the shares. The firm pointed out that while the company missed Q4 expectations, investors are likely to shift their expectations to unsupervised FSD coming to Austin in June this year. This coupled with the launch of CyberCab and the development of MiniCar are expected to deliver positive signals to the market.
Tesla, Inc. (NASDAQ:TSLA) expects 2025 to be monumental as it expects its autonomous driving segment to exhibit safety levels, such that exceed human levels. In addition to that, the company expects to launch FSD in China and Europe in 2025.
Overall, TSLA ranks 3rd on our list of most buzzing stocks to buy according to hedge funds.. While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that certain 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.
