1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 79
Tesla, Inc. (NASDAQ:TSLA) is a multinational American company headquartered in Austin, Texas, focusing on automotive and clean energy. The company specializes in designing and manufacturing electric vehicles, stationary battery energy storage solutions spanning from household to grid-scale, as well as solar panels, solar shingles, and related products and services.
In May 2023, Tesla, Inc. (NASDAQ:TSLA) initiated the construction of its lithium refinery in the broader Corpus Christi region of Texas. The completion of this facility represents a significant financial investment exceeding $1 billion in the Southwest Texas area. This substantial investment underscores the company’s proactive approach to ensuring a consistent supply of high-grade lithium hydroxide suitable for batteries within North America. Additionally, Tesla, Inc. (NASDAQ:TSLA) is already involved in the production of lithium-ion batteries at its Gigafactories, solidifying its position as the market leader in the United States.
According to Insider Monkey’s first quarter database, 79 hedge funds were bullish on Tesla (NASDAQ:TSLA), compared to 82 funds in the prior quarter. Catherine D. Wood’s ARK Investment Management is a prominent stakeholder of the company, with 4.8 million shares worth $1.26 billion.
Here’s what Baron Funds said about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text).
Disclosure: None. You can also take a look at 25 Highest Quality Furniture Brands in the World and Jim Cramer Recommends Selling These 10 Stocks.
