1. Tesla, Inc. (NASDAQ: TSLA)
Number of Hedge Fund Holders: 60
Weight: 10.45%
Topping the list of 12 best ARK stocks to invest in is American self-driving car manufacturer Tesla, Inc. (NASDAQ: TSLA). California-based AI company Tesla, Inc. (NASDAQ: TSLA) designs and manufactures smart electric vehicles and energy storage products.
According to the latest data from ARK Investment Management LLC, the hedge fund owned 3,279,477 shares of Tesla, Inc. (NASDAQ: TSLA) worth $2.32 billion as of August 25, 2021, accounting for 10.45% of the Ark Innovation ETF (NYSEARCA: ARKK).
On August 19, the company unveiled its D1 chip, a specialized chip for training artificial intelligence systems in data centers, at AI Day. Tesla, Inc. (NASDAQ: TSLA) also reported that it is developing Tesla Bot, an AI-powered humanoid robot.
On August 20, Wedbush analyst Daniel Ives maintained an Outperform rating on Tesla, Inc. (NASDAQ: TSLA) with a price target of $1,000 per share. Shares of Tesla, Inc. (NASDAQ: TSLA) increased 10% in the previous month.
The company has a market cap of $699 billion. In the second quarter of 2021, Tesla, Inc. (NASDAQ: TSLA) reported an EPS of $1.45, beating estimates by $0.47. The company’s second-quarter revenue came in at $11.96 billion and beat revenue estimates by $559.33 million.
At the end of the second quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $9.29 billion in Tesla, Inc. (NASDAQ: TSLA), down from 62 in the preceding quarter worth $10.0 billion.
In its Q2 2021 investor letter, Worm Capital LLC mentioned Tesla, Inc. (NASDAQ: TSLA) and discussed its stance on the firm. Here is what the fund said:
“Tesla underperformed in the quarter, but we maintain our high conviction in the long-term thesis on each business model. Much like art or writing, investment research is a continuous process—it never really ends. Prices can move in either direction in any given quarter, but our advantage often comes from knowing the businesses so well that short-term fluctuations in pricing shouldn’t affect our decision-making. On high conviction positions, this patience is often rewarded, which is why research is so valuable to our process.
Tesla is in a class of its own. What many in the market seem to (still) not understand is that Tesla is not a car company so much as a complex manufacturing firm—with significant recurring software potential—growing, in our view, at a targeted rate of 50-100% YoY over the next several years. Unlike any other automotive firm in existence today, Tesla alone is a vertically integrated hardware and software business developing state-of-the-art manufacturing techniques that will revolutionize the auto industry (i.e. its Giga Presses, 4680 cells, etc.). It is a generational company and we anticipate it will eventually be the largest company in the world. Many of the conventional narratives around competition displacing Tesla’s lead are fundamentally flawed, and the many headlines surrounding Tesla’s approach to autonomy are frustratingly superficial. (As an aside, we highly recommend watching Andrej Karpathy’s, Tesla’s head of AI, his recent presentation from June: “Tesla details its self-driving Supercomputer that will bring in the Dojo era”)”.
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