Is Tesla (TSLA) the Top Pick for WallStreetBets Investors, Per Hedge Fund Insights?

We recently published a list of 12 Best WallStreetBets Stocks To Buy According to Hedge Funds . In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against other best WallStreetBets stocks to buy according to hedge funds.

The World Economic Forum’s Global Retail Investor Outlook 2024 highlighted a sustained transition towards younger retail investors. The research, which spans 13 economies, reflects that 30% of Gen Z start investing in early adulthood, against 9% of Gen X and 6% of Baby Boomers. By the time they enter the workforce, the research demonstrated that 86% of Gen Z have learned about personal investing as compared to 47% of Boomers, highlighting a generational transformation in financial habits.

Current Retail Investor Trends

WEF’s survey mentions that retail investors continue to view cryptocurrency as more understandable and easier as compared to traditional investments such as ETFs, MFs, stocks, and bonds. As per the research, 29% tend to avoid stocks because of a lack of understanding, while only 24% mention the same regarding crypto. Interestingly, among the investors aged under 44 holding cryptocurrencies, over half allocated at least a third of their portfolio to it.

Furthermore, WEF’s research mentioned that financial priorities have been pivoting towards short-term needs. In 2024, 51% of investors focused on emergency savings, reflecting an increase from 41% in 2022, while those who emphasized having sufficient to retire declined from 48% to 42%. As per Dean Frankle, Managing Director and Partner, BCG, individual participation in capital markets can result in long-term financial well-being.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In .

Retail Investors Continue to Pump Billions

Bloomberg reported that individual investors are becoming relentless when it comes to investing money in the volatile US markets. The firm, while quoting JPMorgan Chase & Co.’s Emma Wu, mentioned that considering the continuous dip-buying strategy throughout the crash, there are estimates that retail traders’ portfolios remain far from breakeven. However, individual investors’ strategy of “buy-the-dip” amidst trade fears has been doing better as compared to the broader market.

Interestingly, retail investors invested US$11 billion in equities since April 2, when Trump’s administration revealed reciprocal levies, reported Bloomberg, while citing data through Wednesday’s close (April 9, 2025). Bloomberg also highlighted that individual investors continue to dip their toes into stocks, while well-established institutional investors are rotating into international markets and less risky assets, including Treasuries.

Our Methodology

To list the 12 Best WallStreetBets Stocks To Buy According to Hedge Funds, we sifted through the WallStreetBets forum on Reddit and chose the trending ones. Next, we shortlisted the ones that are popular among hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.

Why do we focus on the stocks that hedge funds amass? It's straightforward: our analysis indicates that mimicking the leading stock choices from premier hedge funds allows us to exceed market performance. Each quarter, our monthly publication recommends fourteen small-cap and large-cap equities, delivering an overall return of 373.4% since May 2014, surpassing its benchmark by 218 percentage points. see more details here ).

Tesla, Inc. (NASDAQ: TSLA )

Number of Hedge Fund Owners: 126

Morningstar suggests that Tesla, Inc. (NASDAQ:TSLA)'s competitive edge comes from its intangible assets and cost leadership. The strong brand prestige of Tesla as a high-end carmaker allows them to command higher prices, whereas their proficiency in electric vehicle production lets them manufacture cars more affordably compared to rivals. According to Morningstar, Tesla has the potential to revolutionize both the automobile and energy sectors with innovations like electric vehicles, battery tech, autonomous driving solutions, and solar power systems. Additionally, advancements in their full-self-driving software could significantly boost profitability in the coming years.

Investments made by Tesla, Inc. (NASDAQ: TSLA) in artificial intelligence and robotics have the potential to create new market opportunities and generate additional revenue channels. Their efforts in embodied AI, encompassing both self-driving vehicles and human-like robots, position them as leaders in what could be a groundbreaking technological transformation affecting various sectors. Additionally, Tesla’s substantial collection of actual road-use data gives it a notable edge over competitors in enhancing and perfecting autonomous vehicle technology. Recently, JDP Capital Management, an investment firm, released their Q4 2024 investor communication. Here This is what the fund stated:

“Tesla, Inc. (TSX:TSLA) has become a key holding as mentioned in my 2024 Half-Year Report. The share price surged by 115% over the course of 2024. Our decision to buy in June proved advantageous, following a roughly 30% drop earlier in the year.

We bought back TSLA when the market was once again excessively pessimistic due to declining vehicle orders, even though the company had recently made significant progress with Full Self-Driving (FSD v12). If you haven't tried out the latest version of Full Self-Driving software (FSD 13.3), I recommend giving it a go. For long-time Tesla owners, it’s clear that the advancement in FSD capabilities has been truly remarkable.

I have come to realize that Tesla's leading role in the foundational layers supporting major trends like robotics, intelligent cars, and battery storage will unleash profit expansion that could benefit us for many years. Much like Amazon Web Services or the iPhone did, Full Self-Driving technology and Optimus robots will facilitate the creation of novel business strategies spanning numerous sectors over an extended period..." Tap here to view the complete article. )

Overall, TSLA ranks 5th On our roster of top WallStreetBets picks endorsed by hedge funds, we recognize Tesla’s (TSLA) appeal as an investment; however, we're convinced that certain overlooked artificial intelligence stocks present even better prospects for substantial gains over a shorter duration. One such AI stock has surged since early 2025 despite many well-known AI equities shedding roughly 25% in value. Should you be interested in discovering a significantly underpriced AI option with stronger growth potential compared to TSLA yet trading below five times its earning multiples, explore our detailed analysis on this opportunity. cheapest AI stock .

READ NEXT: 20 Top AI Stocks You Should Consider Purchasing Today and 30 Top Stocks to Purchase Currently as Recommended by Billionaires .

Disclosure: None. This piece was initially published at Insider Monkey .