<div id="readability-page-1">As investor appetite for multistrategy hedge funds continues to grow, Balyasny Asset Management has steadily carved out a prominent place in the industry. Founded in 2001, the firm – widely known as BAM – now oversees roughly $29 billion in assets and competes head-to-head with heavyweight peers such as Israel Englander's Millennium, Ken Griffin's Citadel, and Steve Cohen's Point72.<h3>Claim 50% Off TipRanks Premium and Invest with Confidence </h3><ul><li>Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions </li><li> Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential</li></ul> The firm was co-founded by legendary investor Dmitry Balyasny, who also serves as CIO and managing partner. Weighing in on the major current topic – AI, naturally – he recently said that the biggest tail risk over the coming year would be an unexpected outcome for AI, either to the upside or the downside. On the downside, Balyasny noted that a slowdown in demand could emerge if AI companies, particularly hyperscalers, scaled back spending after failing to achieve the level of monetization they expected. Balyasny also pointed to a less discussed external risk in which the AI sector accelerates faster than anticipated. In that scenario, job losses could occur before workers have the opportunity to retrain for new roles. &#34;Either ‌of those scenarios could create some instability,&#34; Balyasny went on to say, &#34;but I think the more likely outcome is that it continues to grow the way that it has.&#34; While it's still unknown how next year will pan out, in the meantime, Balyasny has been busy making some changes to the big AI names residing in his fund's portfolio – namely, Mag 7 stalwarts Tesla (NASDAQ:TSLA) and Amazon (NASDAQ:AMZN). During Q3, BAM loaded up on one while trimming its holdings of the other. So, here's the lowdown on the pair, and by digging up the data from the TipRanks database, we can find out if the Street agrees with Balyasny's recent moves. Tesla There's rarely a dull moment in Elon Musk's Tesla universe, but nevertheless, 2025 has been a rollercoaster year. The year began with Musk joining the new Trump administration, taking the helm of the controversial DOGE (Department of Government Efficiency). His role in the initiative sparked widespread global protests amid sinking car sales. Predictably, Musk and Trump fell out after a few months, with Musk leaving his post to refocus on Tesla. That move helped restore investor confidence and quell the backlash against the brand. On the company front, Tesla is advancing its autonomous vehicle efforts, and has started trialing Model Y robotaxis in Austin with no human safety driver inside the vehicle, although the robotaxis that are currently carrying paying passengers still include a human supervisor on board. Meanwhile, version 14 of the FSD (full self-driving) software is showing meaningful improvements in reliability. In addition to autonomy, Tesla is pursuing next-generation AI chips and broader AI integration, such as the introduction of the Grok AI assistant in its vehicles to enhance navigation and in-car interaction, while it is also developing its Optimus humanoid. However, the core auto business has struggled – still by far the main revenue generator – showing year-over-year quarterly drops in the first half of the year. Although Q3 represented something of a return to form, that was attributed to the Trump administration ending the $7,500 federal EV tax credit at the end of September. Nevertheless, investors have mostly been willing to overlook the challenges the company is facing and are banking on its autonomous future. Maybe that can explain Balyasny's decision to load up on 1,097,489 TSLA shares in Q3, a position currently worth almost $522 million. That purchase makes sense to Wedbush's Daniel Ives, an analyst ranked among the top 4% on Wall Street, who thinks the company is on track to fulfill its autonomous ambitions. &#34;We have always viewed Musk and Tesla as a leading disruptive technology global player and the first part of this grand strategic vision has taken shape over the past 5 years,&#34; the 5-star analyst said. &#34;Now it's about driving the most important chapter in Tesla's history with an autonomous future ahead. We continue to believe Tesla could reach a $2 trillion market cap early 2026 in a bull case scenario and $3 trillion by the end of 2026 as full scale volume production begins of the autonomous and robotics roadmap.&#34; Accordingly, Ives rates TSLA shares as Outperform (i.e., Buy) while his Street-high $600 price target points to 12-month returns of 26%. (To watch Ives' track record, click here) 11 other analysts join Ives in the bull camp, yet with an additional 12 Holds and 9 Sells, TSLA claims a Hold (i.e., Neutral) consensus rating. Going by the $386.42 average price target, a year from now, shares will be changing hands for a ~19% discount. (See TSLA stock forecast) </div>

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Legendary investor Dmitry Balyasny, co-founder of Balyasny Asset Management, has adjusted his fund's portfolio by increasing holdings in Tesla while reducing those in Amazon. Balyasny sees potential risks and opportunities in AI, with Tesla advancing in autonomous vehicles and AI integration. Analyst Daniel Ives supports Balyasny's move, predicting Tesla's market cap could reach $2-3 trillion by 2026. Balyasny's investment decisions reflect confidence in Tesla's autonomous future despite current challenges.

- Balyasny Asset Management, founded in 2001, manages approximately $29 billion and competes with major hedge funds.  
- Co-founder Dmitry Balyasny highlighted potential risks in the AI sector, including demand slowdowns and job losses due to rapid advancements.  
- In Q3, BAM increased its stake in Tesla while reducing its holdings in Amazon, reflecting confidence in Tesla's autonomous vehicle ambitions despite challenges in its core auto business.

Tip Ranks

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Direxion Daily TSLA Bull 2X Shares

AXS TSLA Bear Daily ETF

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XL2CSOPTSLA

XI2CSOPTSLA

GraniteShares 2x Long TSLA Daily ETF

Tesla or Amazon: Legendary Investor Dmitry Balyasny Snaps Up One Top 'Magnificent 7' Stock