We recently created a list highlighting the 12 Most Widely Held Stocks by Individuals in 2025. In this discussion, we will explore Tesla, Inc. (NASDAQ:TSLA) and its position among other popular stocks held by individuals in 2025.
Retail investors—those investing their own capital directly in the stock market—often base their decisions on personal research, media coverage, social media trends, or peer recommendations. They commonly gravitate toward stocks of well-known brands or companies whose products they use. Moreover, they often look for growth stocks with high potential returns. Although their investment success can be inconsistent and influenced by emotional decision-making, tracking retail investor trends can provide valuable insights since they can greatly impact stock prices and market fluctuations. For context, retail investors have occasionally caused significant losses for hedge funds through short-squeezing, highlighting the importance of monitoring their trends.
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Over time, the types of stocks favored by individual investors have evolved—from consumer brands prevalent in the ’80s and ’90s to well-known tech names in the 2000s and now to technology stocks in the 2010s, benefiting from personal experience with their offerings. Notably, retail investors tend to be late entrants into trending stocks, with their investment inflows often coinciding with market peaks. Recently, the US stock market has seen significant returns driven by a handful of stocks benefiting from the AI trend, many of which are among the most held by retail investors, while previously dominant stocks show signs of lagging.
It’s important to recognize that retail investors can sometimes identify promising high-growth stocks. They often share insights and trends on social media, keeping them informed about new technological advancements. Currently, with various market uncertainties affecting sentiment, institutional investors are treading carefully, shifting investments to undervalued foreign markets like Germany and China. This shifts the spotlight back onto retail investors, who may influence which stocks emerge as frontrunners in this new landscape.
This shift is significant as modern investment approaches have moved away from traditional value-investing strategies that prioritize undervalued stocks to favoring high-growth stocks that rely on momentum, even at high valuations. The key takeaway is that market leaders are often not those that are undervalued but rather those that attract substantial investment interest.
For this analysis, we utilized the Robinhood Investor Index, which highlights popular stocks on the Robinhood platform, alongside the Yahoo Finance Most Active Stocks screener, to identify the most widely held stocks by individual investors. We then compared these findings with our proprietary hedge fund ownership database from Q4 2024, resulting in a list of the top 12 stocks owned by the largest number of hedge funds.
Number of Hedge Fund Holders: 126
Tesla, Inc. (NASDAQ:TSLA) is recognized for its role as a technology-driven firm engaged in making electric vehicles (EVs), energy storage systems, and renewable energy products. Its offerings include various EV models, battery storage solutions, and solar energy products, alongside advancements in autonomous driving technology. In Q4 2024, Tesla achieved record deliveries, driven heavily by the success of the Model Y. Looking forward, the company faces short-term challenges but is optimistic about its growth potential, especially in autonomous driving and robotics, expecting major developments in 2025.
Overall, Tesla ranks 6th among the 12 most widely held stocks by individuals in 2025. Although we recognize Tesla’s potential, we believe that certain AI stocks possess even greater promise for substantial returns in a shorter timeframe. For readers seeking AI stocks that may offer more value than Tesla, we recommend exploring our report on the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
