5 Best Hot Stocks To Buy Now

2. Tesla, Inc. (NASDAQ:TSLA)

Average 3-month Volume as of February 6: 149.29 million

YTD Share Price Gains as of February 6: 79.51%

Number of Hedge Fund Holders: 88

Tesla, Inc. (NASDAQ:TSLA) is a company that creates, designs, manufactures, and sells electric cars, energy storage, and generation systems worldwide, including in the United States and China. Tesla, Inc. (NASDAQ:TSLA) sold 66,051 electric vehicles manufactured in China in January, according to data from the China Passenger Car Association. The company intends to produce an average of 20,000 units per week at its Shanghai factory for the next two months. It is one of the best momentum stocks to invest in. 

On February 6, RBC Capital analyst Tom Narayan raised the price target on Tesla, Inc. (NASDAQ:TSLA) to $223 from $186 and maintained an Outperform rating on the shares. He believes that Tesla, Inc. (NASDAQ:TSLA)’s ability to drive demand and maintain margins above 20% is a positive factor for the company’s short and long-term prospects. The analyst is also cautious about the sustainability of competitor’s price cuts in light of declining profit margins.

According to Insider Monkey’s data, 88 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA) at the end of the third quarter of 2022, compared to 73 funds in the prior quarter. Philippe Laffont’s Coatue Management is a significant position holder in the company, with 3.5 million shares worth $940.5 million. 

Alger Capital made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2022 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a significant technological lead in its large and rapidly growing addressable market. Shares underperformed during the quarter as it confronted transportation capacity issues that caused deliveries to fall short of estimates, as well as developing demand softness. Moreover, the demand softness became evident in increased Model 3 and Y discounts, the introduction of supercharging credits, some consumers deferring purchases until the Inflation Reduction Act EV purchase incentives become effective in January 2023, and other consumers who may be influenced by higher financing rates or deterred from initiating a high-ticket purchase. Despite these near-term difficulties, we remain constructive on EV innovation, adoption, and Tesla’s growth prospects over the long-term.”