Is Tesla (TSLA) Still the Top Pick for Self-Driving Car Stocks, Says Analysts?

We recently put together a list of the 11 Top Self-Driving Car Stocks That Analysts Recommend Buying In this piece, we will examine how Tesla, Inc. (NASDAQ:TSLA) measures up against the competition in the realm of autonomous vehicle stocks.

The phrase "self-driving car stocks" refers to companies whose shares are available for public trading and which are involved in producing, making, or utilizing driverless vehicle tech. Such firms either actively work on advancing self-driving technologies or provide essential components and support services to the sector of autonomous vehicles.

The market for self-driving cars is experiencing rapid expansion. According to Grand View Research, the worldwide autonomous vehicle sector was valued at $68.09 billion in 2024 and is expected to expand at an impressive compound annual growth rate (CAGR) of 19.9% between 2025 and 2030. This surge can be attributed to strong customer interest in adopting new technologies, enhanced road safety measures, increased connectivity options, advances in artificial intelligence, and improvements in sensor technology. Passenger vehicles were dominant in this field during 2024, contributing approximately 69% towards total revenues globally. Furthermore, the North American region held more than 37.1% of the global market share within the same year.

According to Goldman Sachs Research, Level 3 autonomous vehicles—those capable of hands-free and eyes-free operation under certain conditions—are forecasted to comprise around 10% of global car sales by 2030, marking a slight decrease from their earlier projection of 12%. Meanwhile, it’s predicted that Level 4 completely self-driving cars will represent about 2.5% of all sales, climbing modestly from the previously estimated 3.5%. Cars categorized as Levels 2 and 2+—which require driver oversight—will likely increase from current levels of 20% to approximately 30% by 2027. The acceleration in adoption can largely be attributed to advances in artificial intelligence alongside falling costs associated with hardware production, despite ongoing challenges posed by technical issues, regulatory hurdles, and evolving business strategies. A substantial market opportunity exists within the realm of robotaxis, potentially reaching more than $25 billion by 2030, spurred primarily through commercially operated automated vehicle fleets. Costs per mile traveled via these autonomous vehicles are anticipated to drop below $1 by 2030, further decreasing to roughly $0.58 by 2040. In the long term outlook, AVs have potential to capture 60% of total light-duty vehicle purchases internationally by 2040—with significant regional disparities such as China leading with 90%, closely trailed by Europe at 80%, and the U.S. following suit at 65%.

According to S&P Global’s report, the sector's emphasis on self-driving cars has shifted from ambitious full automation (Level 5) towards pragmatic step-by-step solutions. At CES 2025, tech companies and automakers converged with achievable goals, particularly concerning Level 4 autonomy. Businesses now favor technologies like ride-sharing services and automated buses over fully independent private vehicles. This transition is spearheaded by Waymo, which boasts over 4 million total journeys and approximately 150,000 paying customers each week. The company showcased updated models of Hyundai and Zeekr vehicles, expanding operations into further U.S. urban areas and adapting to regional regulations. Such moves highlight how ride-hailing can be expanded effectively despite current constraints.

In the meantime, traditional car manufacturers presented autonomous shuttle designs, whereas Level 2+ and Level 3 advanced driver-assistance systems remain prevalent in cars for consumers. Startups specializing in technologies such as AI processors or sensor software are forming collaborations with bigger firms possessing extensive resources and production capabilities. These alliances are becoming more common. Small enterprises find it challenging to sustain operations independently due to substantial research and development costs along with intricate regulatory requirements. As the industry shifts focus from theoretical excitement to real-world application, expectations point towards Level 4 geofencing solutions and automated delivery services leading the way forward. This transition underscores an incremental, collaborative approach toward achieving full autonomy instead of abrupt changes.

Methodology

To compile this list, we carefully examined reliable resources and created a preliminary roster featuring 20 companies focused on autonomous driving technology. From these, we chose the top 11 stocks expected to offer significant growth prospects as of April 22, 2025. Our selection criteria involved including only those equities projected to achieve at least a 14% increase in value. These stocks are listed here according to their respective anticipated upward mobility.

Please note that not all companies listed exclusively concentrate on self-driving technology. Several of the featured stocks have investments in firms specializing in autonomous driving rather than focusing directly on this area themselves.

Why do we focus on the stocks that hedge funds accumulate? It's straightforward: our analysis indicates that mimicking the leading stock choices from premier hedge funds allows us to surpass the market performance. Each quarter, our monthly publication features 14 small-cap and large-cap equities selected through this approach and has achieved a return of 275% since May 2014, exceeding its benchmark by 150 percentage points. see more details here ).

Tesla, Inc. (NASDAQ: TSLA )

Analysts' Upside Potential as of April 22: 14.16%

Tesla, Inc. (NASDAQ: TSLA) has sped up the shift towards electric vehicles. Autopilot, which is built into every Tesla as a standard feature, includes sophisticated driver assistance functionalities such as adaptive cruise control and automatic steering to keep the car centered within its lane. Despite numerous extra capabilities offered through the company’s Full Self- Driving enhancement option, drivers still have to stay alert and ready to take over at any time. FSD Beta, currently being tested under limited conditions for certain FSD system users, seeks to broaden these abilities by incorporating automated steering on urban streets along with enhanced navigational functions via autopilot. Over the last twelve months, the share price of Tesla has climbed by more than 60%, placing it amongst the most prominent performers in the market. Best Autonomous Driving Stocks.

The firm aims to develop self-driving tech sans lidar—short for "light detection and ranging," where lasers assist vehicles in understanding their environment—which most automakers rely on heavily. In opposition, Tesla, Inc. (NASDAQ:TSLA), has pinned its efforts on advancing computer vision, allowing computers to interpret visual data through camera inputs for decision-making purposes.

The company is building advanced supercomputers called "Dojo" aimed at enhancing their artificial intelligence systems. They have suggested they might allow access to these Dojo units for other companies working on autonomous vehicles. Tesla, Inc. (NASDAQ:TSLA) plans to grow its network of Dojo computers. It should be noted though that these powerful machines require substantial energy; an entire Dojo setup could use over two megawatts of electricity. For reference, one megawatt can typically supply enough power for several hundred houses.

Following the release of the quarterly reports, Wedbush kept their Outperform rating on Tesla, Inc.'s stock (NASDAQ:TSLA) and raised their target price from $315 to $350. Despite concluding a difficult quarter where delivery figures were weak and the firm underperformed expectations across most metrics, they believe "last night marked a crucial conference call for Musk to pivot away from this challenging phase." According to Wedbush, more important than the financial data was Musk’s chance to alter direction, communicate with stakeholders and employees, distance himself from discussions about DOGE/the Trump administration, and affirm his position at the helm of the corporation. This he accomplished emphatically and unambiguously during what the company regards as a historic turnaround moment in its narrative.

Overall, TSLA ranks 11th Among the top picks for self-driving car stocks recommended by experts, Tesla stands out. However, we're convinced that investing in artificial intelligence stocks offers better prospects for significant financial gains over a shorter period. One particular AI stock has seen growth since early 2025, whereas many well-known AI companies have dropped roughly 25% in value during the same time frame. Should you be seeking an AI stock with stronger upside potential compared to Tesla yet trading below five times its earnings, consider reviewing our detailed analysis on this opportunity. cheapest AI stock .

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Disclosure: There are none to declare. This article was initially published here. Insider Monkey .