5 Best Auto Stocks to Invest In

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 72

Tesla, Inc. (NASDAQ:TSLA) is the world’s most famous manufacturer of electric vehicles. The company has secured a dominant position in the market after struggling through extreme manufacturing challenges with a car type that was previously thought of as science fiction.

Tesla, Inc. (NASDAQ:TSLA)’s strongest point right now is decreasing costs. These are necessary for the company to increase its market penetration in a market that is supply constrained.  On this front, Tesla, Inc. (NASDAQ:TSLA)’s latest quarterly results saw the company reduce its production costs by 10% and start on a track of further reductions. Additionally, the quarter also saw Tesla, Inc. (NASDAQ:TSLA)’s energy business bring in solid revenue.

Citi raised Tesla, Inc. (NASDAQ:TSLA)’s share price target to $424 from $375 in August 2022, highlighting that strong execution and non automotive upside drove the decision. 72 out of the 895 hedge funds part of Insider Monkey’s Q2 2022 survey had bought the company’s shares.

Tesla, Inc. (NASDAQ:TSLA)’s largest investor in our database is Catherine D. Wood’s ARK Investment Management. It has a $1 billion stake via 1.4 million shares.

Baron Funds mentioned the company in its Q2 2022 investor letter. Here is what the fund said:

When we completed our initial due diligence on Tesla, which diligence has been ongoing since 2014, we decided to invest $360 million in Tesla over the next two years. I then called Roger and outlined why I thought we could earn 20 times our capital over the next 10 years. Roger was so certain I was wrong that he offered to bet me $1 million that Tesla would fail. “Roger, I can’t bet you a million dollars. First, if you are right, I couldn’t afford to pay you. Second, if I’m right, you’re my friend, and I couldn’t take your money.” We settled on a dinner bet…” (Click here to see the full text)