The Motley Foolยท2025-06-26 07:06Core Insights - The most held stock on Robinhood is Tesla, which has surpassed Apple and Nvidia, indicating a shift in retail investor preferences towards electric vehicles and AI-driven growth opportunities [14][6][15] Group 1: Retail Investing Trends - Retail investors are increasingly significant in the trading landscape, with brokerages like Robinhood catering specifically to this demographic [2][3] - Robinhood's "100 Most Popular" list reflects the sentiments and preferences of retail investors, showcasing the stocks they are most interested in [5] Group 2: Tesla's Market Position - Tesla is projected to reach $2,600 per share by 2029, representing a potential upside of 646% based on its recent closing price of $348.68 [15][16] - The company is expected to derive 63% of its estimated $1.2 trillion in annual sales from AI-driven robotaxi operations by 2029, with a significant portion of its earnings before interest, taxes, depreciation, and amortization (EBITDA) also coming from this segment [16] Group 3: Competitive Landscape - Tesla has generated approximately $11.2 billion in sales from energy generation and storage over the past four quarters, diversifying its revenue streams beyond electric vehicles [17] - The company faces increasing competition in the EV market, which has led to a decline in vehicle margins and necessitated multiple price cuts on its models [20] Group 4: Leadership and Execution Challenges - CEO Elon Musk's ambitious vision has garnered investor support, but there are concerns regarding the execution of promises, particularly around autonomous driving technology [19] - Tesla's stock valuation is significantly higher than traditional auto stocks, trading at 121 times estimated EPS in 2026, despite a projected 39% decline in EPS from 2022 to 2026 [21]