We recently published an article titled Billionaire Nicholas J. Pritzker’s 8 Stocks with Huge Upside Potential. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against Nicholas J. Pritzker’s other stock picks with huge upside potential.
Nicholas J. Pritzker is the chairman and co-founder of Tao Capital Partners, a San Francisco-based venture capital firm established in 2013. A prominent American entrepreneur and member of the influential Pritzker family, Nicholas Pritzker is widely recognized for his business acumen and leadership within both the family’s ventures and his own independent endeavors. He previously served as Chairman and CEO of the Hyatt Development Corporation and is associated with the Pritzker family’s substantial business interests, including ownership stakes in Hyatt Hotels and Conwood, a leading chewing tobacco company. His academic journey includes studies at Reed College, Lake Forest College, and the London School of Economics, followed by earning a J.D. from the University of Chicago.
At Tao Capital Partners, Pritzker oversees a firm that strategically focuses on investments in technology, transportation, healthcare, education, sustainable food, alternative energy, agriculture, consumer products, real estate, and hospitality. Although he holds the role of chairman, Nicholas Pritzker is not the portfolio manager of the firm. Instead, that position is held by Matthias Brachtel, who is responsible for managing the firm’s investment portfolio and making critical financial decisions. Under their leadership, Tao Capital has established a reputation for backing innovative and sustainable ventures, emphasizing long-term positive impacts alongside financial returns.
Tao Capital Partners follows a disciplined investment philosophy, targeting sectors poised for growth and transformation. The firm’s investments include companies within the technology and transportation industries, as well as those focused on healthcare, education, sustainable food, and clean energy solutions. This diversified approach reflects the firm’s commitment to not only achieving financial gains but also fostering advancements in critical global sectors.
As of Q4 2024, Tao Capital Partners reported managing $143.28 million in 13F securities across ten core holdings. The firm’s commitment to sustainable and impactful investment aligns with Nicholas Pritzker’s broader vision of leveraging capital to drive positive change. Pritzker’s guidance continues to shape the firm’s strategic direction, while Matthias Brachtel’s portfolio management expertise ensures the optimization of returns within the chosen sectors. Through a combination of innovative vision and practical financial management, Tao Capital Partners continues to build a diverse portfolio aimed at fostering sustainable growth.
Our Methodology
For this article, we searched through Tao Capital’s Q4 2024 13F filings to identify billionaire Nicholas J. Pritzker’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 2% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders as of Q4: 126
Tao Capital’s Equity Stake: $34.83 Million
Upside Potential as of May 8: 2.90%
Tesla, Inc. (NASDAQ:TSLA), the electric vehicle and clean energy powerhouse headquartered in Austin, Texas, reported disappointing financial results for the first quarter of 2025. Adjusted earnings per share came in at $0.27, while revenue reached $19.3 billion, both significantly below market expectations of $0.41 EPS and $21.3 billion in revenue. This marked Tesla’s weakest quarter by sales since Q2 2022 and its lowest profitability since Q1 2021, indicating a challenging start to the year.
The company’s automotive segment faced particular pressure, with revenue declining by 20% year-over-year to $14 billion, the lowest figure since Q3 2021. Additionally, Tesla, Inc. (NASDAQ:TSLA)’s reliance on automotive regulatory credits became evident, as it generated $595 million from these credits compared to just $400 million in overall operating profit, highlighting a dependency on non-core revenue streams. Vehicle deliveries also fell short, with 337,000 units delivered during the quarter—17% below consensus expectations—marking the slowest delivery growth since 2022.
Amid these financial strains, Tesla’s stock has faced increased volatility, fueled by investor concerns about CEO Elon Musk’s focus as he balances leadership at Tesla, Inc. (NASDAQ:TSLA) and other ventures. However, the board recently reaffirmed its commitment to Musk, who has pledged to dedicate more time to addressing Tesla’s operational and strategic challenges.
Despite the current headwinds, Tesla remains positioned for potential recovery. With a price target of $284.23 and an upside potential of 2.90%, Tesla, Inc. (NASDAQ:TSLA) is among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. As the company navigates economic challenges and works to stabilize vehicle production, its leadership in electric vehicles and energy solutions could catalyze a turnaround, especially as consumer preferences continue to shift toward sustainable transportation and clean energy.
Aristotle Atlantic Large Cap Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2025 investor letter:
“The underweight in Tesla, Inc. (NASDAQ:TSLA) contributed to performance in the first quarter of 2025. Tesla’s automobile sales declined in the quarter, in part due to factory changeovers that were required for updates to the company’s best-selling vehicle, the Model Y. This resulted in slower sales volume in the quarter. Competition from China’s BYD is causing market share losses for Tesla in several non-U.S. markets. The CEO’s position as an advisor to President Trump has damaged Tesla’s brand image among a cohort of traditional electric vehicle buyers.”
Overall TSLA ranks 8th among billionaire Nicholas J. Pritzker’s stock picks with huge upside potential. While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
