5 Best Growth Stocks To Buy For the Next 5 Years

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1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 72   

Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. It is one of the elite growth stocks to invest in. On October 20, the CEO of Tesla Elon Musk said that Tesla could be worth more than Apple and Saudi Aramco combined. On October 20, Tesla’s CEO said that its engineering team had turned its focus on a next-generation electric car platform which will be half the price of Tesla’s Model 3/Y platform. 

On October 20, RBC Capital analyst Joseph Spak maintained an Outperform rating on Tesla, Inc. (NASDAQ:TSLA) stock and lowered the price target to $325 from $340. 

At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $7.2 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 80 in the preceding quarter worth $11.3 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…)

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You can also take a peek at 10 Best Bargain Stocks To Buy Right Now and 10 Best Infrastructure Stocks To Buy Now.

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