1. Tesla, Inc. (NASDAQ:TSLA)
Average 3-Month Volume: 96.03 million
Number of Hedge Fund Holders: 88
Tesla, Inc. (NASDAQ:TSLA) is an Austin, Texas-based electric vehicle (EV) manufacturer with a global footprint.
The company led by Elon Musk was given a target price of $175 along with an Outperform rating by Dan Ives at Wedbush on December 23. The analyst anticipates Tesla, Inc. (NASDAQ:TSLA) to deliver 410,000 to 415,000 units during Q4 2022 as opposed to the company’s forecast of 450,000 units and the consensus estimate of 435,000 units. Tesla, Inc.’s (NASDAQ:TSLA) stock price has taken a serious beating due to Musk’s decision to acquire Twitter. Musk has announced that he intends not to sell any Tesla, Inc. (NASDAQ:TSLA) shares for the next two years. Furthermore, he has committed to stepping down as the CEO of Twitter after finding a suitable candidate for the role. Despite economic uncertainty ahead, Tesla, Inc. (NASDAQ:TSLA) has shortlisted a new location for its Gigafactory.
Here’s what Baron Funds said about Tesla, Inc. (NASDAQ:TSLA) in its Q3 2022 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) makes fully electric vehicles (EVs), related software offerings, solar and energy storage products, and battery cells. After a tough second quarter that included a prolonged shutdown of one of Tesla’s key manufacturing facilities in Shanghai, the company demonstrated a significant 40% sequential increase in production volumes resulting in another quarterly record of production and deliveries. Despite the second quarter complexities, inflationary pressures, and production ramp-up of two new facilities (Berlin and Austin), the company exceeded Wall Street expectations in the second quarter. It maintained healthy 26% normalized gross margins, achieved industry-leading 18% adjusted operating income margins, and has generated over $14 billion of cash from operations over the past year. Moreover, due to Tesla’s high level of vertical integration and U.S. manufacturing capacity, the company is expected to be one of the key beneficiaries of the Inflation Reduction Act, qualifying for significant manufacturing and consumer-related incentives. We believe these incentives can add up to tens of billions of dollars over the coming decade, while also enhancing Tesla’s competitive advantage versus other automakers. The company also held its second artificial intelligence day, which presented continued advancements in its vehicle self-driving program and showcased its rapidly evolving humanoid robot developments (check out the Optimus videos on YouTube). We continue to believe Tesla is well positioned to benefit from complementary tectonic shifts in the automotive industry, including electrification, autonomous driving, and shared mobility. And, yes, Tesla is still effectively debt free, with over $18 billion of cash on its balance sheet, and investors are even speculating about a stock buyback, a far cry from worries of bankruptcy just a few years ago.”
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a peek at the 11 Best Streaming Stocks To Buy and 10 Undervalued Chip Stocks To Buy.
