Rowan Street Capital’s New Addition: Tesla (TSLA)

Rowan Street Capital, an investment management company, released its Q4 2025 investor letter. A copy of the letter can be downloaded here. Rowan Street generated solid results in 2025 but underperformed the S&P 500 Index. The Composite returned +11.1% (net) in 2025 compared to +17.9% for the Index. Rowan Street delivered a cumulative net return of +252% over the past three years, compared to +78% for the Index during the same period. It is a concentrated strategy with a focus on long-term compounding. 2025 performance was driven by Tesla, its new position in the year. Rowan Street invests in the same set of companies, allowing time and compounding to build growth. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Rowan Street Capital highlighted stocks like Tesla, Inc. (NASDAQ:TSLA).  Tesla, Inc. (NASDAQ:TSLA) is an American company that manufactures electric vehicles and energy generation and storage systems. On February 9, 2026, Tesla, Inc. (NASDAQ:TSLA) stock closed at $417.32 per share. One-month return of Tesla, Inc. (NASDAQ:TSLA) was -6.68%, and its shares are up 27.04% over the past twelve months. Tesla, Inc. (NASDAQ:TSLA) has a market capitalization of $1.566 trillion.

Rowan Street Capital stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its fourth quarter 2025 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) is our newest core investment and was the only new position initiated during 2025. We began building the position during the first half of the year, at a time when sentiment toward the company was notably pessimistic and investor confidence was low.

Tesla, Inc. (NASDAQ:TSLA) is in the 23rd position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 120 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of the third quarter, up from 115 in the previous quarter. While we acknowledge the potential of Tesla, Inc. (NASDAQ: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.