In this article, we will take a look at 5 of the best EV battery stocks to buy in late 2023. If you want to see more such companies, you can go directly to the 10 Best EV Battery Stocks To Buy in Late 2023.
5. Sensata Technologies Holding plc (NYSE:ST)
Number of Hedge Fund Holders: 32
Sensata Technologies Holding plc (NYSE:ST) is an engineering technology firm specializing in selling sensors and related products for automobiles and aircraft. Additionally, the company offers battery management systems designed to assess battery charge rates, performance, and various parameters.
Sensata Technologies Holding plc (NYSE:ST) delivered a robust financial performance in Q3 2023, achieving an adjusted EPS of 91 cents. This marked a substantial increase compared to the previous year, surpassing market expectations. However, despite the positive earnings, the company experienced a slight decrease in revenues by 1.7% to $1,001.3 million. On the other hand, its Performance Sensing revenues witnessed a 2% increase, while Sensing Solutions’ operating income was impacted by slower growth in industrial revenue. The heavy vehicle off-road business reported a decline in organic revenue growth, offset by growth in the automotive and aerospace sectors.
During this year’s second quarter, 32 out of the 910 hedge funds part of Insider Monkey’s database had held a stake in Sensata Technologies Holding plc (NYSE:ST). Robert Joseph Caruso’s Select Equity Group is the biggest investor among these, owning 9.2 million shares that are worth $414 million.
4. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 41
Albemarle Corporation (NYSE:ALB) is a specialty chemicals manufacturing company headquartered in Charlotte, North Carolina. The company operates through three main divisions: lithium, bromine specialties, and catalysts. It is noteworthy that Albemarle became the leading supplier of lithium for electric vehicle batteries by the year 2020.
At the close of Q2 2023, 41 hedge funds were long Albemarle Corporation (NYSE:ALB) and disclosed stakes worth $436.49 million in the company. The hedge fund sentiment for the stock is positive. As of the second quarter, Philippe Laffont’s Coatue Management is one of the top investors in Albemarle Corporation (NYSE:ALB) and has stakes worth $154.34 million in the company.
3. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 61
Honeywell International Inc. (NASDAQ:HON) is a publicly traded American multinational conglomerate corporation. The company’s main business operations are divided into four areas: aerospace, building technologies, performance materials and technologies, and safety and productivity solutions.
Earlier this September, battery manufacturer ESS Inc. entered into a agreement with Honeywell International Inc. (NASDAQ:HON), involving a $27.5 million investment, and the potential for an additional $20 million in capital in a second phase. The partnership is significant as it includes an arrangement for Honeywell to serve as a buyer, seller, and reseller of ESS technology, with an initial sales target of $300 million.
By the end of this year’s second quarter, 61 among the 910 hedge funds polled by Insider Monkey had bought and owned Honeywell International Inc. (NASDAQ:HON)’s shares. John Overdeck and David Siegel’s Two Sigma Advisors is the largest shareholder among these through a $406 million investment.
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 72
General Motors, officially known as the General Motors Company (NYSE:GM), is a multinational automotive manufacturing company with its headquarters in Detroit, Michigan, United States. As of November 19, the automotive manufacturer issues a quarterly dividend of $0.09 per share, resulting in a dividend yield of 1.26%.
By the end of this year’s second quarter, 72 of the 910 hedge funds part of Insider Monkey’s database had also bought General Motors Company (NYSE:GM)’s shares. The largest investor is Nativism Global Asset Management’s Harris Associates through a $1.49 billion investment.
Patient Capital Opportunity Equity Strategy made the following comment about General Motors Company (NYSE:GM) in its Q2 2023 investor letter:
“We like other names mostly ignored by the market for similar reasons. Names like Expedia (EXPE), General Motors Company (NYSE:GM), and Delta Air Lines. These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”
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.
