Tesla Robotaxi Launch and FSD Advancements Drive the Company's Growth

Tesla, Inc. (NASDAQ:TSLA) is one of the 10 Best EV Stocks to Buy According to Hedge Funds.

The company achieves record growth in its second quarter amid tariff challenges.

On July 23, 2025, Tesla, Inc. (NASDAQ:TSLA) reported in its second-quarter results the successful launch of its Robotaxis in Austin. The innovative vehicle provides a ride with no driver in the seat, and its expansion to other regions is awaiting regulatory approvals. Also, the company’s Model Y gained the position as the bestselling car in multiple countries, including Turkey, the Netherlands, Switzerland, and Austria.

The advancements in full self-driving (FSD) technology are progressing. In the second quarter report, the company conveyed that it has plans to increase the parameter count by 10 times, optimizing the software’s capabilities. Additionally, the company is also moving up with its Optimus humanoid robot. It anticipates scale production next year, with the production target set at 1 million units annually within five years.

Insider Monkey database recorded 115 hedge funds invested in Tesla, Inc. (NASDAQ:TSLA), signifying the institutional confidence in the stock.

The U.S. multinational automotive and clean energy company, Tesla, Inc. (NASDAQ:TSLA), was founded in 2003. Headquartered in Texas, the company is a pioneer in mass-producing electric vehicles. Its integrated business model includes solar products and battery energy storage solutions.

While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Best Freight Stocks to Invest in Now and 11 Best Annual Dividend Stocks to Buy According to Hedge Funds

Disclosure. None.