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Tsai Capital, an investment management company, released its fourth quarter investor letter. A copy of the letter can be downloaded here. Tsai Capital celebrated 25 years track record in 2024. Tsai Capital Growth Equity Strategy gained 23.0% after fees, and 24.5% before fees in 2024 compared with a total return of 25.0% for the S&P 500 Index. The strategy gained 604.5% cumulatively after fees, and 886.4% before fees since its inception 25 years ago compared to 526.7% total return for the S&P 500 Index. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Tsai Capital highlighted stocks like Tesla, Inc. (NASDAQ:TSLA), in the fourth quarter 2024 investor letter. Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, as well as energy generation and storage systems. The one-month return of Tesla, Inc. (NASDAQ:TSLA) was -5.20%, and its shares gained 106.03% of their value over the last 52 weeks. On January 29, 2025, Tesla, Inc. (NASDAQ:TSLA) stock closed at $389.10 per share with a market capitalization of $1.249 trillion.
Tsai Capital stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
"Tesla, Inc. (NASDAQ:TSLA) (TSLA—Year of First Purchase: 2020) We’ve owned Tesla since February 2020 and initially paid an average of about $41.66 per share5 . Tesla is a leading AI company that has formidable competitive advantages across various sectors, including electric vehicles, software, and energy storage.
Tesla, Inc. (NASDAQ:TSLA) is in 23rd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 99 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of the third quarter which was 85 in the previous quarter. While we acknowledge the potential of Tesla, Inc. (NASDAQ: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 timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.