5 Best Energy Storage Stocks to Buy According to Hedge Funds

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1. Tesla Inc. (NASDAQ:TSLA)

Number of Hedge Funds Holding: 120

Stock Upside: 34.01%

Tesla Inc. (NASDAQ:TSLA) is one of the best energy storage stocks to buy according to hedge funds. On April 9, GLJ Research analyst Gordon Johnson reiterated a Sell rating on Tesla Inc. (NASDAQ:TSLA) and maintained his $25.28 price target.

Johnson’s main argument is that Tesla’s share price has been inflated for six years not primarily by fundamentals, but by heavy retail call buying that pushed dealers into gamma hedging. As a result, the dealers were forced to buy Tesla stock to offset their exposure, which drove stock price much higher. Analysts describe this pattern as a gamma squeeze.

In 2026, analyst Gordon Johnson argued that Tesla’s stock is no longer being boosted by retail options trading. He pointed out that the put‑to‑call ratio has barely dropped below 0.60 this year, unlike in past years when such moves often triggered gains through dealer hedging. Tesla’s call option activity has also fallen behind the broader S&P 500 every session in 2026, showing weaker investor appetite. Johnson believes this means Tesla’s valuation will now shift away from options‑driven momentum and back toward its actual business fundamentals.

Tesla Inc. (NASDAQ:TSLA) is an electric vehicle and clean energy company. It designs and manufactures battery-based energy storage systems for residential, commercial, and utility-scale applications. Its energy storage products include the Powerwall for homes, the Powerpack for commercial use, and the Megapack for large-scale grid projects, all of which store electricity for later use and support grid stability.

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 the cheapest AI stock.

READ NEXT: 0.28% Percent of George Soros’ Stock Portfolio Is in These 10 Small-Cap Stocks and 7 Must-Buy Non-Tech Stocks to Invest in Now.

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