6. Tesla Inc. (NASDAQ:TSLA)
Volume: 80.182 million
Average Volume (3-Month): 96.093 million
Number of Hedge Fund Holders: 85
Tesla Inc. (NASDAQ:TSLA) is the world’s largest pure-play EV manufacturer, with significant contributions to the renewable energy sector. In 2023, 100% of its revenue was generated from sustainable products and services, all while delivering 1.81 million electric vehicles.
Its innovation extends beyond vehicles, as evidenced by its Gigafactory, a key manufacturing site for EV components such as lithium-ion batteries. The company’s Energy Generation and Storage segment includes products like the Powerwall, Powerpack, and Megapack, which are battery solutions that cater to residential, commercial, and utility-scale applications, allowing users to store renewable energy for future use.
Global EV sales are slowing down due to high battery replacement costs, higher interest rates, and growing competition but the company managed to produce over 410,000 units and deliver 444,000 units in Q2. It aims to scale its production to 3 million vehicles by 2025.
In this period, it reported revenue of $25.50 billion, a 2.3% increase from the previous year. Automotive revenue saw a rise of 14% compared to the first quarter. Energy storage revenue doubled to reach $3 billion.
Tesla Inc.’s (NASDAQ:TSLA) diversification into the robotaxi business presents a compelling investment opportunity. The unveiling event will be on October 10. Cathie Wood, a longtime investor, believes that this business could make up 86% of its earnings by 2029.
85 hedge funds held stakes in the company in the second quarter. Valued at $8,252,723,916, Citadel Investment Group is the largest shareholder of the company.
As the world shifts towards sustainable energy and electric vehicles, Tesla Inc.’s (NASDAQ:TSLA) focus on innovation and technology positions it well to capitalize on these trends. Elon Musk’s vision is also essential for its success.
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.”
