5 Best Battery Stocks To Buy Heading Into 2023

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 88

Tesla, Inc. (NASDAQ:TSLA) is a Texas-based company that manufactures, leases, and sells electric vehicles, energy generation systems, and battery storage solutions. Tesla provides Powerwall, an integrated battery system that stores solar energy for backup protection, so when the grid goes down, the power stays on. Tesla, Inc. (NASDAQ:TSLA) is one of the leading battery stocks to consider buying. 

For the EV sector, Morgan Stanley estimated global EV sales of 9.7 million units and global EV penetration of 11.8% in 2023, compared to 10.1% in 2022. Looking at the 2023 setup, Morgan Stanley maintained an Overweight rating on Tesla, Inc. (NASDAQ:TSLA), noting that it is one of the long-term winners in the sector.

According to Insider Monkey’s data, Tesla, Inc. (NASDAQ:TSLA) was part of 88 hedge fund portfolios at the end of September 2022, compared to 73 in the last quarter. Cathie Wood’s ARK Investment Management is a significant position holder in the company, with 4 million shares worth over $1 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 look at 10 Best BDC Stocks To Buy and Best Dogs of the Dow Stocks.