5 Best Lithium and Battery Stocks To Buy

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 72

Tesla, Inc. (NASDAQ:TSLA) is one of the world’s largest suppliers of battery energy storage systems and the world’s largest EV automaker by market cap. According to our database, 72 hedge funds held long positions in the company, with ARK Investment Management holding the most significant stake in Q2. Cathie Wood’s firm owned 1.44 million of the company shares, valued at $1.09 billion.

For Q2 2022, Tesla, Inc. (NASDAQ:TSLA) reported an adjusted EPS of $2.27, compared to the expected $1.81 estimate. However, the company posted a miss on revenues after generating $16.93 billion, versus the $17.1 billion consensus.

On August 29, after Tesla, Inc. (NASDAQ:TSLA) announced its 3-1 stock split, Deutsche Bank analyst Emmanuel Rosner reiterated a Buy rating on the company shares and lowered the price target to $375 from $1,125. The analyst made a guided tour of the company’s new Giga factory and noted that it “could be a game-changer,” and can make Tesla, Inc. (NASDAQ:TSLA) an “even more formidable competitor in the region, while likely boosting the company’s gross margins.” Rosner sees 2023 as the pivotal year for the company and views the company as “one of the most attractive stories in the autos sector.”

Here is what GMO LLC had to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter:

“To put the demand growth for clean energy materials into perspective, let’s look at Tesla (NASDAQ:TSLA). At its Battery Day last year, Tesla projected three terawatt hours of lithium-ion battery capacity needed in 2030 for the EVs and storage they expect to produce. To reach this target, Tesla alone would gobble up approximately 75% of the world’s current nickel production and four times the world’s current lithium production. These numbers are astounding enough, but when one considers that EVs currently represent just 15% of global nickel demand and about 45% of lithium demand and that Tesla will likely be producing only a small proportion of the world’s EVs in 2030, the implications are staggering. Clean energy materials companies will make a lot more money in the decades to come than they ever have both because they will be selling a lot more metric tons of material and because there are certain to be shortages where supply can’t keep up with the rapidly growing demand.”

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