10 Best EV Stocks to Buy According to Hedge Funds

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1. Tesla, Inc. (NASDAQ:TSLA)

No. of Hedge Funds: 115

Tesla, Inc. (NASDAQ:TSLA) earns a ranking among our list of 10 best EV stocks to buy according to hedge funds. The company achieves record growth in its second quarter amid tariff challenges.

On July 23, 2025, Tesla, Inc. (NASDAQ:TSLA) reported in its second-quarter results the successful launch of its Robotaxis in Austin. The innovative vehicle provides a ride with no driver in the seat, and its expansion to other regions is awaiting regulatory approvals. Also, the company’s Model Y gained the position as the bestselling car in multiple countries, including Turkey, the Netherlands, Switzerland, and Austria.

The advancements in full self-driving (FSD) technology are progressing. In the second quarter report, the company conveyed that it has plans to increase the parameter count by 10 times, optimizing the software’s capabilities. Additionally, the company is also moving up with its Optimus humanoid robot. It anticipates scale production next year, with the production target set at 1 million units annually within five years.

Insider Monkey database recorded 115 hedge funds invested in Tesla, Inc. (NASDAQ:TSLA), signifying the institutional confidence in the stock.

The U.S. multinational automotive and clean energy company, Tesla, Inc. (NASDAQ:TSLA), was founded in 2003. Headquartered in Texas, the company is a pioneer in mass-producing electric vehicles. Its integrated business model includes solar products and battery energy storage solutions.

While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSLA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 Best Energy Dividend Stocks to Invest in and 14 Best Cheap Dividend Stocks to Buy Under $10.

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