1. Tesla, Inc. (NASDAQ:TSLA)
Market Capitalization: $557.6 Billion
Number of Hedge Fund Holders: 74
Tesla, Inc. (NASDAQ:TSLA), a leading American clean energy company headquartered in Austin, Texas, is a powerhouse in electric vehicles. Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells not just EVs, but also energy storage solutions, solar panels, and even solar shingles.
The company is expected to strengthen its product pipeline further in 2024 with the release of the Cyber truck and Tesla Semi. In Q1 2024, the company’s energy division achieved significant progress, with margins hitting a record high of 24.6%. Energy storage deployments are expected to grow by at least 75% in 2024 compared to 2023.
However, Tesla, Inc. (NASDAQ:TSLA) reported a 9% decline in first-quarter revenue, marking the largest drop since 2012 and falling short of analysts’ expectations. This decrease is attributed to the impact of ongoing price cuts on the electric vehicle company. During the earnings call, CEO Elon Musk informed investors that the production of new affordable EV models might start earlier than expected.
The average price target for Tesla, Inc. (NASDAQ:TSLA) from over 50 analysts stands at $183. This target price reflects an upside potential of over 4% from the current price levels.
Here’s what Baron Funds said about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2024 investor letter:
“The vast majority of the Fund’s underperformance this quarter stemmed from the Fund’s 10-year investment in Tesla, Inc. (NASDAQ:TSLA). Tesla’s shares fell 29.3% during the period and detracted 13.41% from the Fund’s first quarter results. Although Tesla has contributed importantly to the Fund’s performance since 2014, on occasion it has detracted from quarterly performance. In previous instances when Tesla shares have underperformed during a discrete period, they have shortly afterwards reflected the strong growth of the underlying business and the stock has appreciated considerably. We believe that will be the case again, although cannot guarantee it.
A significant decline also occurred at the end of 2022. In that instance, investors had become concerned about a host of external factors. Investors believed the company founder, visionary, and CEO Elon Musk was distracted by his acquisition of Twitter. They also believed a weak Chinese economy emerging from COVID and U.S. government policies would curtail the purchases of Tesla vehicles. These fears proved to be overblown. As the company achieved milestones in the succeeding year, the stock subsequently doubled over the next 12 months…” (Click here to read the full text)
As the biggest EV stock in the world in 2024, Tesla, Inc. (NASDAQ:TSLA) is held by 74 hedge funds as of Q1 2024.
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