Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy

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1. Tesla Inc. (NASDAQ:TSLA)

Portfolio Weight: 9.5%

Value of Position: $1.6 Billion

Share Price Return (Sep 30—Nov 28): -3.3%

Number of Hedge Fund Holders: 120

Tesla Inc. (NASDAQ:TSLA) is among the top 10 stocks to buy from Cathie Wood’s stock portfolio. As of the end of Q3 2025, ARK Investment Management’s holding in Tesla stood at $1.6 billion, up from $978 million at the end of Q2, as per its 13F filings. With that, the company accounted for 9.5% of ARK’s total 13F portfolio, up from 7.2% in the prior quarter.

On November 26, Mizuho’s Vijay Rakesh reiterated an Outperform rating on Tesla Inc. (NASDAQ:TSLA) while trimming the price target to $475 from $485, according to TheFly. The target revision was due to a change in the analyst’s estimates after he factored in a softer outlook for electric vehicle demand in both China and the U.S.

Another factor that affected the estimates was the expected 50% decline in Chinese government subsidies for electric vehicles in 2026. Rakesh highlights that Tesla could encounter notable headwinds as these reductions would weigh on industry-wide demand. In addition, he flagged potential challenges for Tesla’s analog components in 2026.

Separately, as per a November 23 Bloomberg report, Tesla Inc. (NASDAQ:TSLA) is close to finalizing the design of its AI5 chip and is about to begin work on the next version, AI6, as per an X post by CEO Elon Musk. These chips are expected to be used in Tesla’s cars and data centers. The CEO appears to have robust plans for growth in this area, as he further said:

“Our goal is to bring a new AI chip design to volume production every 12 months. The current version in cars is AI4, we are close to taping out AI5 and are starting work on AI6.” He added, “We expect to build chips at higher volumes ultimately than all other AI chips combined. I’m not kidding.”

While these plans are commendable, Tesla Inc. (NASDAQ:TSLA) is facing a cautious outlook, with challenges in its core EV business and pressure on vehicle sales. As a result, consensus opinion is mixed at the moment, with only 40% of analysts covering it recommending a Buy on it, as of market close on November 27. The consensus 1-year median potential upside also remains a meagre 2%.

Tesla Inc. (NASDAQ:TSLA) is an EV manufacturer and clean energy company known for its innovative solutions in sustainable transportation and energy.

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 this cheapest AI stock.

READ NEXT: 30 Most Fantastic Stocks Every Investor Should Pay Attention To and 10 Hottest Smid-Cap Stocks So Far In 2025.

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