5 Best Alternative Energy Stocks to Buy Now

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 72   

Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. The company is one of the most prominent clean energy stocks to invest in. Reports indicate that the company is aiming to double sales in Germany to 80,000 vehicles this year from 39,714 a year ago. According to Automobilwochem, the electric vehicle maker is running below that pace so far this year with 24,734 vehicles sold in Germany through the end of August. In August, Tesla showed some momentum in Germany and recorded market share of about 2.7%.

On September 16, Deutsche Bank analyst Emmanuel Rosner maintained a Buy rating on Tesla, Inc. (NASDAQ:TSLA) stock and raised the price target to $400 from $375, highlighting that the 2023 gross margin estimates benefit greatly from the Berlin and Texas ramp up. 

At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $7.1 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 80 in the preceding quarter worth $11.2 billion. 

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ:TSLA) was one of them. Here is what the fund said:

“In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:

First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic;

second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.

Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful. (click here to read more…)

You can also take a peek at 11 Best Consumer Stocks To Buy Now and 10 Most Shorted Stocks in the World.

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