4. Tesla Inc. (NASDAQ:TSLA)
Volume: 28.944 million
Average Volume (3-Month): 97.708 million
Number of Hedge Fund Holders: 85
Tesla Inc. (NASDAQ:TSLA) is an automotive and clean energy company that designs, manufactures and sells electric vehicles, including cars, SUVs, and trucks, known for its innovative technology, like the Autopilot driver assistance system and battery technology. It also produces solar panels and energy storage systems, aiming to accelerate the world’s transition to sustainable energy.
Tesla Inc.’s (NASDAQ:TSLA) Gigafactory manufactures EV components. Its Energy Generation and Storage segment includes products like Powerwall, Powerpack, and Megapack, that allow users to store renewable energy. In 2023, 100% of its revenue was generated from sustainable products and services, all while delivering 1.81 million electric vehicles.
In the second quarter of 2024, the company’s revenue improved 2.3% year-over-year. Automotive revenue increased 14% sequentially. Energy storage revenue doubled to reach $3 billion. Despite slowing global EV sales, the company produced over 410,000 units and delivered 444,000 units in Q2, making a contribution of 84% to the total revenue. It aims to scale production to 3 million vehicles by 2025.
Investments in AI have enabled autonomous driving, solidifying its position as a promising long-term stock. Its FSD v12 vehicle is fully AI-driven and has logged 300 billion miles. Beyond self-driving and AI training chips, Tesla Inc. (NASDAQ:TSLA) has also garnered attention for its Tesla Bot, a humanoid autonomous robot capable of performing various tasks.
Its home charging solution, Wall Connector, complements its Supercharger network. The company recently opened its Supercharger network to other EV companies, introducing the North American Charging Standard (NACS). This move maximizes the use of its charging stations and reinforces its role in the wider EV charging ecosystem.
The company’s diversification into the robotaxi business presents a compelling investment opportunity. The unveiling event will be on October 10. As the world shifts towards sustainable energy and electric vehicles, its focus on innovation and technology positions it well to capitalize on these trends.
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.”
