1. Tesla, Inc. (NASDAQ:TSLA)
5-Year Revenue CAGR: 30.75%
Average Price Target Upside: 2.66%
Number of Hedge Fund Holders: 85
Tesla, Inc. (NASDAQ:TSLA) tops our list of high-growth lithium stocks as it continues to lead the EV and renewable energy sectors and is expanding both its production and innovation efforts. The company is investing $3.6 billion in a new Nevada battery factory to produce larger 4680 battery cells, which are essential for the Cybertruck that demands around 7 GWh of battery capacity annually.
In line with its vertical integration strategy, the company is also investing $1 billion in a Texas lithium refinery that will produce battery-grade lithium hydroxide using an environmentally friendly process. The refinery is expected to generate 50 GWh annually, which improves the company’s battery supply chain and cost efficiency.
Tesla (NASDAQ:TSLA) also leads in EV infrastructure, with its Supercharger network, which surpasses 50,000 stations worldwide and in turn eases the range anxiety for long-distance and urban driving. The company is actively opening its Supercharger network to other automakers and has introduced the North American Charging Standard (NACS), which aims to set industry-wide charging standards.
The latest in the company news is its “We, Robot” event on October 10. The event received mixed reviews from the market. While a number of analysts and experts remained unimpressed by it, many others see a lot of potential. Wedbush reaffirmed its Outperform rating and a $300 price target for Tesla (NASDAQ:TSLA) following the event, as reported by The Fly on October 11.
The firm expressed strong optimism about the company’s advancements in autonomous technology and the Cybercab. The analysts were particularly impressed by the Cybercab, and expect that its pricing could help create a fleet business potentially generating $10 billion annually as it scales in the coming years.
However, Wedbush noted that challenges, including regulatory approval, insurance, and specifics regarding the Cybercab’s launch, will need to be addressed as the company moves forward in transportation innovation.
Analyst Dan Ives said that Tesla (NASDAQ:TSLA) “should have spent more time on details around this strategic autonomous vision.” However, the firm expressed strong disagreement with the idea that the event was disappointing. The firm argues that seeing the Cybercab in person and observing significant advancements in Optimus, which they had hands-on experience with during the event, was impressive.
Additionally, Cathie Wood’s Ark Invest has been bullish on the company stock for a long time and has been the most prominent shareholder of the company according to Insider Monkey’s Q2 database. The firm owned 5.3 million of the company stock, worth $1.05 billion in the quarter. More recently, she purchased approximately 12,700 shares of the stock on October 11.
ClearBridge Investments 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.”
While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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