We recently published a list of the 12 Reddit Stocks with High Potential. In this article, we are going to take a look at where Tesla Inc. (NASDAQ:TSLA) stands against other Reddit stocks with high potential.
On April 15, Monica Guerra, Morgan Stanley Wealth Management Head of US Policy, joined ‘Closing Bell Overtime’ on CNBC to discuss how investors should avoid knee-jerk reactions when it comes to volatility. Monica Guerra pointed out the significance of focusing on President Trump’s statements, as they contribute to market volatility despite their mixed and unclear nature. She acknowledged that deciphering his comments is challenging because they lack clarity but staying attentive to both presidential statements and congressional actions is still crucial. She stressed that policy certainty might emerge once Congress finalizes the budget, which is expected around August this year.
She also emphasized that while the day started positively with markets up by 0.79%, the situation otherwise remains uncertain. She reminded clients that the 90-day reprieve on tariffs is not the end of the story and the ongoing studies on semiconductors could lead to additional pressures related to tariffs and market volatility. Guerra noted that tariff revenues are being considered as funding sources for tax cuts and this interplay between tariffs and taxes could influence market volatility. On discussing future developments in tariff policy, she mentioned that more than 70 countries have approached President Trump in attempts to renegotiate the universal 10% tariff and reciprocal tariffs. She cautioned that even if reciprocal tariffs are eliminated and only the universal tariff remains, additional increases could be highly inflationary. China’s effective tariff rate is already at 145% and adding reciprocal tariffs could push inflationary pressures further.
Guerra advised clients against reacting impulsively to such news and encouraged them to focus on long-term investment goals.
Our Methodology
We sifted through Reddit threads to make a list of the top stocks with the highest analysts’ upside potential (at least 30%) as of April 15. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Tesla Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 126
Average Upside Potential as of April 15: 36.71%
Tesla Inc. (NASDAQ:TSLA) deals in electric vehicles and energy generation and storage systems through its two segments. The Automotive segment offers EVs and related products and services. The Energy Generation and Storage segment offers solar energy generation and energy storage products and services.
The company’s autonomous driving and AI-related initiatives are anticipated to eventually make up 90% of its valuation. Optimus alone can generate more than $10 trillion in revenue for Tesla. On April 14, Deutsche Bank reiterated a Buy rating on the company because it expects Tesla to do well in the long run because of these advancements and the ability to utilize AI in its products. However, the bank does acknowledge the short-term volatility that the business faces right now.
Still, Tesla Inc. (NASDAQ:TSLA) is somewhat insulated from the current tariff environments when compared to other major automakers in the US. This is because Tesla has a higher degree of vertical integration and makes the majority of its parts itself, something that traditional automakers lack. However, Tesla heavily relies on international sources, mainly China, for a significant amount of its parts and batteries.
JDP Capital Management initiated the stock in June 2024 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)
Overall, TSLA ranks 9th on our list of the 12 Reddit stocks with high potential. While we acknowledge the growth potential of TSLA, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.