We recently published a list of Top 10 AI News You Should Pay Attention To. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other top AI news you should pay attention to.
LinkedIn co-founder Reid Hoffman said in a latest program on CNBC that the DeepSeek breakthrough was not “news” for him and many tech insiders as he believed sooner or later more efficient models would be launched. However, he sees China’s rise in the AI race as surprising:
“I do think that the thing that is news is, well, look, as we’ve been saying, China is in the game. This is actually, in fact, a game-on competition, and it was resoundingly demonstrated that way. There is good, useful work that comes out of it.”
The tech investor believes efficiency will lead to more use cases and usage:
“Say, for example, you can train a model on a thousand GPUs, but you can make it much better on 10,000 GPUs. You will, in a lot of cases, always spend for the 10,000 GPUs or the 100,000 GPUs because if your coding model is even 20% better with that and you think that there are billions of people who could be using and engaging with that around the world, that’s actually worth it at that kind of cost. So, the fact that you’re trying to do efficiency — that’s a good thing. All of the American companies will also get to points where they’re focusing on efficiency. I think there are things that we can learn from some of the stuff the Chinese are doing.”
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For this article, we picked 10 AI stocks currently making moves on the back of the latest news. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Investors: 99
Eric Jackson, EMJ Capital founder, was recently asked on CNBC why he sold Tesla, Inc. (NASDAQ:TSLA) shares a few weeks back. The analyst said they sold the stock amid tariff-related concerns, among other reasons.
“Two reasons really—an incredible run since the election, I mean, it’s straight up basically. So I just felt like it was time to consolidate some of those gains. But obviously, I knew there was this potential for looming China tariffs, which has played out just in the last day or so. And obviously, out of the MAG stocks, Apple and Tesla, Inc. (NASDAQ:TSLA) are going to be the two names that get hurt the most on fears about that going on for a long time. I don’t think it will. I think what we’ve learned this week is that President Trump wants deals, he wants to log wins. He sees Mexico and Canada as wins. I think he wants to log a deal with China. And I think what was probably most promising on that front is the reaction of the Chinese to the tariffs and what they counter-proposed in terms of retaliatory tariffs. It could have gone much stronger, much steeper—they didn’t. That signals to me that they want a deal as well.”
However, the analyst said in the same program that he believes Tesla, Inc. (NASDAQ:TSLA) shares can “track up” this year.
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q4 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) detracted from performance in the fourth quarter of 2024. The stock had a strong performance in the fourth quarter, and our portfolio has an underweight position relative to the benchmark weight. Tesla reported better-than-expected third quarter earnings in late October. Given the CEO of Tesla’s position as an advisor to President-elect Trump, performance in the shares accelerated following the U.S. presidential election. There are expectations that regulation for autonomous driving will be centralized with the federal government. There have been reports in the press that tax incentives for electric vehicles will be eliminated or reduced, which could have a negative impact on Tesla’s subscale competitors.”
Overall, TSLA ranks 5th on our list of top AI news you should pay attention to. While we acknowledge the potential of TSLA, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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