10 Worst Blue Chip Stocks to Buy

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 126

% Decline on a YTD Basis: ~21.5%

Morgan Stanley analyst Adam Jonas recently maintained a “Buy” rating on Tesla, Inc. (NASDAQ:TSLA)’s stock, setting a price objective of $410.00. The analyst’s rating stems from factors demonstrating the company’s strategic positioning in the evolving manufacturing landscape. The integration of AI and advanced manufacturing technologies continue to reshape the broader industry, and Tesla, Inc. (NASDAQ:TSLA) is the frontrunner of this transformation, says Jonas. By leveraging AI and robotics, the company remains well-placed to capitalize on the resurgence of US manufacturing, which remains in line with the vision of establishing cutting-edge factories domestically.

The analyst further opines that the transition in manufacturing is not about reducing costs, but about embracing technological advancements to create factories of the future. Tesla, Inc. (NASDAQ:TSLA)’s commitment to innovation, together with its capability to implement AI-driven solutions, places it as a leader in the new industrial era. This strategic advantage and Tesla, Inc. (NASDAQ:TSLA)’s ongoing developments support the analyst’s positive outlook.

Baron Funds, an investment management firm, released its Q1 2025 investor letter. Here is what the fund said:

“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles (EVs), solar products, and energy storage solutions alongside the development of advanced real-world AI technologies. Shares fell due to declining analyst expectations for auto delivery volume and margins in 2025 as a result of 1) a refresh of the Model Y, its highest volume vehicle and the world’s best selling car in 2024; 2) Elon Musk’s controversial role in the Trump administration; and 3) regulatory changes that could pose potential operational challenges. Despite these headwinds, we remain confident in Tesla’s long-term growth, underpinned by secular trends in EVs and energy storage adoption, a compelling product line, its leading cost structure, and cutting-edge technology. A Model Y refresh alongside the debut of new mass-market models should boost demand. Over time, we expect the political pressure to fade, while Tesla’s AI ambitions—a robotaxi service launching this year and a fast-growing humanoid program—hold the promise of transforming its growth story.”