5 EV Stocks to Invest In

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 72   

Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, and sells electric vehicles. On September 9, news agency Reuters reported that the company was looking to set up a lithium refinery in Texas. The move is part of a larger plan to shore up battery components as EV demand surges across the world. Lithium prices have skyrocketed in the past few months and supply chain issues arising from the pandemic recovery have hit supplies, forcing auto makers towards these decisions. 

On September 6, Wolfe Research analyst Rod Lache upgraded Tesla, Inc. (NASDAQ:TSLA) stock to Outperform from Peer Perform with a price target of $360, noting that the firm would benefit from the Inflation Reduction Act. 

At the end of the second quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $7.1 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 80 in the preceding quarter worth $11.2 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, Inc. (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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