We recently published a list of Top 10 AI News You Shouldn’t Miss. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other top AI news you shouldn’t miss.
All everyone could talk about in the technical AI landscape these days is DeepSeek-R1, a Chinese open-source LLM that analysts believe can give major American AI companies a run for their money. Why is DeepSeek making waves and why is it called a breakthrough in the AI race?
DeepSeek AI model is several times cheaper to use for professional purposes when compared to its American counterparts including OpenAI’s o1 model. Media reports also suggest the model beat almost all key AI models in the industry by significant margins.
CNBC’s Deirdre Bosa explained what makes these Chinese models a challenge for US tech companies:
“The cost, I mean, these models coming out of China are just built at a fraction of the price when you think about OpenAI. That’s spending $5 billion a year, burning through billions of dollars a year. These models, the DeepSeek for example, they say they built it for less than $6 million. ByteDance as well, you know, shows that it was built and you can access it at much, much lower prices. So, this really turns on sort of this truth that we have thought about generative AI for the last few years—that you need hundreds of millions of dollars to develop bigger and better models. What the Chinese labs and companies are doing is they’re going straight to the frontier. They’re building with sort of infrastructure and outputs that are already out there, built in many cases by American companies and startups, and they’re improving on it, they’re innovating on it, and producing models that are just as good, in some cases, at a fraction of the cost.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we picked 10 AI stocks currently in the news. With each company 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).
Copyright: wolandmaster / 123RF Stock Photo
Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Investors: 99
David Nicholson from The Futurum Group said while talking to Schwab Network in a latest program that Tesla, Inc. (NASDAQ:TSLA) is facing headwinds from multiple fronts and the only thing that can help the company’s fundamentals is the possible launch of a sub-$30,000 EV.
“I think Tesla, Inc. (NASDAQ:TSLA) faces headwinds from all fronts. Domestically, you have Elon’s support of an administration that is probably not popular among the core audience for EVs in the U.S. Then you have China with its dominance in the sub-$30,000 U.S. EV range. That’s more of a global threat. We’ll see what happens with the looming China-U.S. kind of economic Cold War that’s underway.
You have an administration that, generally speaking, does not want to support EV subsidies in the U.S., so all of those things are negatives from a fundamental perspective. But the one thing that doesn’t get reported on a lot—and I think people are afraid to say it publicly, but it’s a really big deal for a lot of folks looking at EVs—is that, yes, there are alternatives, but they just don’t like Elon Musk’s public persona. And so that’s a hit.”
The only thing they have working in their favor is the whole vision around what they claim to be delivering. So, we’ll see if they deliver a sub-$30,000 vehicle in the next six months. That would be just about the only thing that I can imagine helping the fundamentals.”
Delaware Ivy Core Equity Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q3 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) – Though it isn’t a holding within the portfolio, Tesla continues to be a cult-like stock with weak fundamentals dependent on highly speculative development of autonomous driving technology. The company’s share price moved higher during the quarter after weakness in the year-to-date period.”
Overall, TSLA ranks 7th on our list of top AI news you shouldn’t miss. 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center