Tesla (TSLA) is on the List of Jackson Peak Capital’s Top Portfolio Contributors. Here’s How

Jackson Peak Capital, an investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the fund returned +33.2%, net compared to MSCI ACWI’s -0.9% return and HFRX Equity Hedge Index’s +0.2% return. Fundamental longs, event-driven longs, and net exposure management led the fund’s outperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Jackson Peak Capital highlighted stocks such as Tesla, Inc. (NASDAQ:TSLA). Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, as well as energy generation and storage systems. The one-month return of Tesla, Inc. (NASDAQ:TSLA) was 20.21%, and its shares gained 89.74% of their value over the last 52 weeks. On June 4, 2025, Tesla, Inc. (NASDAQ:TSLA) stock closed at $332.05 per share, with a market capitalization of $1.07 trillion.

Jackson Peak Capital stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2025 investor letter:

“For the contributors, the largest contributor in Q1 came from two separate, but related, event-driven trades in Tesla, Inc. (NASDAQ:TSLA). We were active in the stock in Q4 as discussed in our last letter, and during Q1, we caught two bounces from oversold conditions. The first came in January after TSLA had fallen 25% in the final two weeks of 2024. This presented an opportunity for a tactical long as managers looked to express thematic ideas for the new US administration to start the year. The second oversold opportunity came in March after the stock had completely retraced the post-election rally. We identified this as an area where the stock would likely find support from short covering and buyers looking for an opportunity to enter at pre-election levels.”

Is Tesla, Inc. (TSLA) The Mega Cap Stock Gaining Bullish Momentum This Week?

Tesla, Inc. (NASDAQ:TSLA) is in 23rd position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of the first quarter, which was 126 in the previous quarter. While we acknowledge the potential of Tesla, Inc. (NASDAQ: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. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Tesla, Inc. (NASDAQ:TSLA) and shared the list of buzzing AI stocks on latest news and ratings. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.