From Yahoo Finance: 2025-05-05 11:13:00

In a recent list, we explored 15 high-growth companies hedge funds are buying, with a focus on Tesla, Inc. (NASDAQ:TSLA) and its position among other high-growth stocks.

The global economy in 2025 is projected to see modest growth, with US GDP at 2%, Eurozone at 0.9%, and China at 4.2%. Rising inflation, fiscal spending, potential tariffs, and limited central bank rate-cutting space may lead to market uncertainty.

Deutsche Bank Wealth Management notes a shift from monetary to fiscal policy, with China expected to launch growth initiatives. Equities, particularly US stocks, are favored, along with bond markets and commodities. Infrastructure investment is seen as a long-term growth area.

Hedge funds saw remarkable performance in 2024, with an average return of 10.7% by November. Some funds, like Light Street Capital and Discovery Capital, saw substantial gains, reflecting market volatility and policy shifts.

Tesla, Inc. (NASDAQ:TSLA) ranks 4th among high-growth companies hedge funds are buying, with 126 hedge fund holders and an average 5-year revenue growth of 33.81%. Cantor Fitzgerald remains bullish on Tesla, citing strong finances and future plans like Robotaxis and full self-driving expansion.

Elon Musk steps back from his role in the US government’s DOGE advisory group to focus more on Tesla following a challenging first quarter. The company reported a drop in profits and car sales, prompting Musk to dedicate more time to guiding Tesla through uncertain times.

Insider Monkey’s database shows 126 hedge funds bullish on Tesla, with Marshall Wace LLP as a leading stakeholder. While Tesla ranks high among high-growth companies, AI stocks are seen as holding greater potential for higher returns in a shorter time frame.

Read more: Is Tesla, Inc. (TSLA) Among The High Growth Companies Hedge Funds Are Buying?