5 Best Fast Growth Stocks to Buy Now

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 91

Tesla, Inc. (NASDAQ:TSLA) remains a decent high-growth stock to invest in according to hedge funds. During the first quarter of 2023 Tesla, Inc. (NASDAQ:TSLA)’s revenue jumped about 24.2% year over year to reach $23.3 billion. However, the figure missed estimates by $60 million. Tesla, Inc. (NASDAQ:TSLA) received downgrades from several analysts after the quarterly report, but Cathie Wood’s ARK, which is a significant shareholder in Tesla, Inc. (NASDAQ:TSLA), issued a $2000 price target for the stock.

As of the end of the first quarter of 2023, ARK Investment Management has a $1.12 billion stake in Tesla, Inc. (NASDAQ:TSLA). At the end of the fourth quarter of 2022, 91 hedge funds in Insider Monkey’s database had stakes in the company.

Aristotle Atlantic Focus Growth Strategy made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2023 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) was a negative contributor to performance due to our underweight position relative to Russell 1000 Growth Index, as the company had strong performance in Q1. The strength occurred after the company partially reversed a previously announced price cut for its electric vehicles following a period of strong demand. Tesla also reported better-than-expected results for Q4 2022 during the first quarter.

Tesla Motors designs, develops, manufactures, and markets high-performance, technologically advanced electric cars and solar energy generation and energy storage products. Tesla sells more than five fully electric cars, among others, the Model X and Y SUVs, as well as the Model S sedan and Model 3 sedan. The company has a growing global network of Tesla Superchargers, which are industrial grade, high-speed vehicle chargers, typically placed along well-traveled routes and in and around dense city centers to allow Tesla owners quick and reliable charging. Tesla offers certain advanced driver assist systems under its Autopilot and Full Self-Driving options. US customers generate nearly half of Tesla’s sales.

We see Tesla as the leading manufacturer of battery powered electric vehicles (EVs). The company has achieved scaled production of EVs before the other large automobile manufacturers. The company’s technology in battery production and self-driving technology is more mature than competitors’ offerings. EVs are one of the fastest growing categories within automobile manufacturing. The profit margin in the automotive segment is significantly above automotive competitors which provides the company flexibility to price its vehicles more strategically as the competition eventually scales up their EV production. The direct-to-consumer sales model gives the company more control over its relationship with its customers as well as a source of higher profit margin since there is no dealership share of the profits.”