We just covered the Graham Stephan Stock Portfolio: Top 11 Stocks and Tesla, Inc. (NASDAQ:TSLA) ranks 11th on this list.

Graham Stephan famously bought Tesla, Inc. (NASDAQ:TSLA) stock after purchasing a Tesla Model 3 in 2019. He reasoned that if he loved the car, a lot of other people would as well. According to multiple reports, he invested $5,000 in the stock back then. The stock had one of the most impressive runs at the stock market in the coming years, climbing to more than $1.5 trillion in market capitalization. However, Stephan has publicly documented that he sold off his holding in two chunks since 2019. Both times, Stephan cautioned against the stretching valuation of the company and sold his stake in the firm as a risk-averse investor.

Even as investors like Stephan exit Tesla, Inc. (NASDAQ:TSLA), hedge funds have been loading up on the stock. The Q1 2026 earnings report, released late last month, delivered the exact margin expansion story institutions wanted to see.  Total revenue reached $22.39 billion, up 16% year-over-year. Even more impressively, non-GAAP adjusted EPS came in at $0.41, surging 52% year-on-year and crushing Wall Street expectations of $0.34 to $0.37. Critically, the automotive gross margin excluding regulatory credits hit 19.2%, the highest level in over a year. This indicates that despite fierce global pricing competition, Tesla vehicle unit economics are stabilizing through lower material costs.

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.

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