5. Tesla, Inc. (NASDAQ:TSLA)
Short Interest as % of Shares Outstanding: 2.72%
Number of Hedge Fund Holders: 85
Tesla, Inc. (NASDAQ:TSLA) has firmly established itself as a major player in the EV market and renewable energy sectors. The company is known for its electric cars that use high-performance lithium-ion batteries. The company’s innovation extends beyond its vehicles, as evidenced by its Gigafactory, a key manufacturing site for its batteries. It is planning to open new facilities soon to further enhance its production capabilities.
In 2019, the company acquired Maxwell Technologies, a move that brought ultracapacitor production and advanced battery technology into its fold. Maxwell’s work on dry coating electrode technology holds the potential to significantly improve the efficiency of lithium-ion batteries.
The company’s reach extends beyond electric cars with its Energy Generation and Storage segment, which includes products like the Powerwall, Powerpack, and Megapack. These battery solutions cater to residential, commercial, and utility-scale applications, allowing users to store renewable energy for future use. This diversification puts the company forward as a producer of not only electric vehicles but also sustainable energy solutions.
According to Insider Monkey’s database, 85 hedge funds held stakes in Tesla (NASDAQ:TSLA) in the second quarter, with positions worth $5 billion. With 5.3 million shares of the company, valued at $1.05 billion, Catherine D. Wood’s ARK Investment Management is the largest shareholder of the company, as of June 30.
In 2023, Tesla (NASDAQ:TSLA) delivered over 1.8 million vehicles, which showcases its production and delivery capabilities. Favorable government policies supporting emission reductions have also played a role in the company’s growth. In the second quarter, it reported revenue of $25.5 billion, a 2% increase from the previous year. Automotive revenue saw a rise of 14% compared to the first quarter.
Despite facing challenges like higher interest rates and growing competition in the EV sector, the company managed to produce over 410,000 units and deliver 444,000 units in Q2. The company aims to scale its production to 3 million vehicles by 2025, which reflects a significant increase in capacity.
Moreover, its Cybertruck, priced at $111,000, was the top-selling vehicle in its price range in the U.S. in July, according to Kelley Blue Book. This accomplishment highlights the company’s strong market presence and its appeal among high-end consumers. With its continued innovation, expanding production capabilities, and strong sales performance, the company remains one of the most profitable and influential car manufacturers globally. It is one of our best battery stocks to buy now according to short sellers.
Baron Partners Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles, related software and components, and solar and energy storage products. The stock contributed as Tesla continued to drive vehicle manufacturing costs lower, accelerate the launch of new models, and invest heavily in its lucrative AI initiatives. Shareholders reaffirmed the CEO’s compensation plan, alleviating personnel and legal uncertainties. Despite material operational complexities resulting in significant shutdowns of key manufacturing facilities and lower sales volume, Tesla presented better-than-expected margins in the quarter. It expects to launch a lower cost model as soon as late 2024, which should result in accelerated revenue growth, reduced manufacturing costs, and increased factory utilization. The company continued to advance its autonomous driving capabilities, expanding its already significant data centers and developing its humanoid robot Optimus. These investments increased confidence in the attractive growth opportunities that remain ahead.”
