13 Best Technology Stocks to Buy for Long-Term Investment

4. Tesla Inc. (NASDAQ:TSLA)

3-Year Revenue CAGR: 15.46%

Number of Hedge Fund Holders: 126

Tesla Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation & storage systems. Its Automotive segment offers EVs and related services and products. Whereas the Energy Generation & Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation & energy storage products and related services.

According to EV’s Claudio Afonso, sales of the new Tesla vehicles in China dropped 58% from the previous week and 69% year-over-year in the second week of May, which is the lowest level since January. Still, on May 13, analyst Colin Langan from Wells Fargo maintained a Sell rating on the stock with a $120 price target. Tesla Inc. (NASDAQ:TSLA) is also facing challenges in Europe, with declines in vehicle registrations in key markets like the UK and Germany.

The company is attempting to boost US sales by introducing a cheaper Model Y. Musk recently stated that the company is focused on bringing robotaxis to Austin in June, with unsupervised autonomy initially being solved for the Model Y in Austin. He anticipates expanding this capability to many other US cities by the end of 2025. While the exact ramp-up speed cannot be predicted, Musk is confident that millions of Tesla vehicles will be operating fully autonomously in H2 2026.

JDP Capital Management initiated a new core position in the company and stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) is new core position that I wrote about in 2024 Half Year Letter. The stock was up 115% in 2024. We benefited from the June 2024 timing of our purchase, buying after the stock had declined about 30% in the first part of the year.

We repurchased TSLA at a time when the market had [again] become overly bearish based on slowing vehicle orders despite the company having just achieved a breakthrough in Full Self Driving (FSD v12). If you haven’t had a chance to experience the most recent Full Self Driving software (FSD 13.3) I suggest you try it for yourself. If you’ve had a Tesla for a while, you know that the trajectory of FSD improvement has been nothing less than astounding.

It has become clearer to me that Tesla’s leadership position in the infrastructure layer underpinning mega-trends in robotics, smart vehicles and battery storage will unlock earnings growth that we can ride for years. Similar to AWS or the iPhone, Full-Self-Driving and Optimus will enable new business models to be built across a wide range of industries over time…” (Click here to read the full text)