5 Best Day Trading Stocks To Buy

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Shareholders: 72

Average 3-Month Daily Volume: 72.2 million

5-Year Monthly Beta: 2.13

Ranking second is Tesla, Inc. (NASDAQ:TSLA), which is one of the most actively traded high-beta stocks on the market. After a tremendous run during 2020 and 2021, shares of the electric vehicle maker have cooled off considerably, falling by more than 40% from their peak.

Despite growing sales 8-fold between 2017 and 2021, Tesla, Inc. (NASDAQ:TSLA) still sold less than 1 million units last year, well below the figures of larger automakers. When coupled with the trend towards EVs, that gives the company an extended runway to continue growing, which could persist for many years, if not decades. While the long-term outlook for the company is bright, its valuation is likely to continue straddling the line between aggressive and pie-in-the-sky, which will continue to make it a target of short sellers and a great stock to day trade.

Tesla, Inc. (NASDAQ:TSLA) has never been a huge hit among the select group of hedge funds tracked by Insider Monkey’s database, but that changed somewhat during Q4, as ownership of the stock jumped by 44%. It’s since trended back down over each of the last two quarters, leaving the stock well outside the 30 most popular among hedge funds. Cathie Wood’s ARK Investment Management raised its stake in TSLA by 183% during Q3 to 4.08 million shares worth $1.08 billion on June 30.

Carillon Tower Advisers discussed some of Tesla, Inc. (NASDAQ:TSLA)’s planned moves in its Q2 2022 investor letter:

“Tesla, Inc. (NASDAQ:TSLA), the electric vehicle and clean energy company, is set to recall more than 100,000 cars in China over a potential safety risk and is reportedly delaying a plan to restore production at its Shanghai plant. CEO Elon Musk was reported to have said that the company would cut 10% of salaried staff and freeze hiring due to a bad feeling he has about the economy.”