1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 85
Tesla, Inc. (NASDAQ:TSLA) is a leading force in the EV sector through both its cutting-edge vehicles and an expanding charging infrastructure. The company’s Supercharger network, a key component of its strategy, has grown to over 50,000 stations worldwide since its inception in 2012. It tops our list of the best EV charging stocks to invest in.
The extensive network is designed to ease range anxiety for Tesla drivers by offering fast charging options at strategic locations along major travel routes and in urban centers. It not only facilitates long-distance travel but also improves convenience for everyday driving.
In addition to the Supercharger network, the company provides home charging solutions through its Wall Connector, which allows users to charge their cars overnight. The home charging option complements the public charging infrastructure and is integrated with the company’s advanced navigation systems, which help drivers find the best routes and locate nearby charging stations effortlessly.
The company’s recent decision to open its Supercharger network to other EV companies highlights its ambition to set the standard in the industry. By introducing the North American Charging Standard (NACS), it has made its charging technology available to vehicles from other major automakers such as Ford and Rivian. The move not only maximizes the use of its charging stations but also reinforces its role as a key player in the wider EV charging ecosystem.
On September 9, Deutsche Bank analyst Ed Yu resumed coverage of Tesla (NASDAQ:TSLA) with a Buy rating and $295 price target. Yu views the company not merely as an automaker but as a technology platform with the potential to reshape several industries.
The analyst acknowledged the company’s significant lead in battery electric vehicles, particularly in terms of scale and cost efficiency. Although there may be temporary softness in automotive deliveries and margins, this is expected to be short-lived, with new models and updates on the horizon.
Tesla (NASDAQ:TSLA) was part of 85 hedge funds’ portfolios in the second quarter with a total stake value of $5 billion. Catherine D. Wood’s ARK Investment Management is the biggest shareholder in the company and has a position worth $1.05 billion as of Q2.
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.”
While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) to grow, 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 NVIDIA 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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