Top 10 Trending Stocks as Famous Billionaire Predicts Massive AI Stock Rally Before Bubble Burst

3. Tesla Inc (NASDAQ:TSLA)

Number of Hedge Fund Investors: 115

Gene Munster, Deepwater Asset Management managing partner, said in a latest program on CNBC that the end of EV tax credits could bode well for Tesla Inc (NASDAQ:TSLA) because its competitors have been “under-investing” in the space, which is likely to give the Musk-led company an edge in the Full Self-Driving race.

“Since the beginning of the year when this became clear, we saw GM, Ford, Volkswagen, and Toyota all make comments about cutting their EV factory output, the number of models, and in general think about a 20 to 30% cut just over the past few months. The reason why I mentioned that commentary from people who are buying Tesla Inc (NASDAQ:TSLA) now about FSD, because they get that three-month free trial, is that in fact if these traditional car companies have taken the bait and decided to pull back investment in EVs because of the removal of the tax credit, it puts them in an awkward position. What’s going to happen with autonomy is it’s not going to slowly improve. We’re going to have this breakthrough moment. And for traditional auto to monetize this, they have to have an electric fleet. You’re not going to have a gas-powered EV. That’s just not going to happen. So by them essentially underinvesting, they’re not going to get to scale. It’s a catch-22. And I think they’ve really read the tea leaves wrong in terms of how to invest around the removal of the tax credit,” Munster said.

Munster said that Tesla Inc (NASDAQ:TSLA) has been making EVs “profitably” while its competitors are losing money

“Then there’s this other part of the equation about where they are with FSD and how close we are. From that perspective, it’s really coming down to two companies. It’s coming down to Tesla and then I think what’s going on with Waymo. I do want to mention Tesla and what they’ve been doing in Austin has been slower on the robo taxi. I believe they’re seeing more interventions than they were hoping for, which has caused that slowdown. And I think it does speak to the fact that we’re just not there yet. But I think we will have a moment. It’s not going to be linear. I think it’s going to be a breakout moment when it comes to the ability of these models to drive safely.”

Baron Focused Growth Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its second quarter 2025 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles (EVs), solar products, and energy storage solutions, while also developing advanced real-world AI technologies. Despite ongoing macroeconomic challenges and regulatory complexities, shares climbed after Tesla completed a limited commercial rollout of its highly anticipated robotaxi business in Austin—following more than a decade of development and billions of dollars in investment. This milestone signals a potentially transformative shift in the automotive industry and opens up a sizable new market beyond the company’s core operations. Investor sentiment also improved after Elon Musk stepped back from government-related engagements, boosting confidence in Tesla’s near-term execution. Tesla introduced a refreshed Model Y globally, featuring design and performance upgrades, and outlined plans to unveil new mass-market models starting next quarter. Meanwhile, the company is progressing toward scaling production of its humanoid robot, adding another dimension to its long-term growth story.”