5 Most Popular EV Stocks Among Famous Hedge Funds

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 60

Tesla, Inc. (NASDAQ:TSLA) is perhaps the first EV stock that made headlines before the automotive industry caught on to the electric vehicle trend, making Tesla, Inc. (NASDAQ:TSLA) one of the most popular EV stocks among hedge funds. Elon Musk’s Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer and a clean energy company based in Texas, that also offers storage batteries and solar products. 

Cathie Wood’s ARK Investment Management is one of the largest Tesla, Inc. (NASDAQ:TSLA) stakeholders, with the hedge fund owning 3.95 million shares of the company worth over $3 billion. Tesla, Inc. (NASDAQ:TSLA) is the largest stock owned by Cathie Wood in Q3, representing 7.36% of her $41 billion portfolio. Overall, 60 elite funds were bullish on the company in the third quarter, holding total stakes worth $10.64 billion. 

On October 20, Tesla, Inc. (NASDAQ:TSLA) disclosed earnings for Q3, posting an EPS of $1.86, beating estimates by $0.25. The $13.76 billion revenue increased 56.85% year-over-year, surpassing estimates by $54.61 million. 

UBS analyst Patrick Hummel on December 8 raised the price target on Tesla, Inc. (NASDAQ:TSLA) to $1,000 from $725 but kept a Neutral rating on the shares.

The analyst observed that Tesla, Inc. (NASDAQ:TSLA) will probably continue topping growth and margins consensus expectations in 2022, having a significant advantage in a rapidly accelerating global EV market due to better access to chips and batteries through vertical integration. Tesla, Inc. (NASDAQ:TSLA) also enjoys 20% global BEV market share and industry-leading profitability.

Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q3 2021 investor letter:

“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock contributed as Tesla continued to present strong deliveries growth and a meaningful improvement in profitability despite a complex supply-chain environment. Demand remains robust, new localized manufacturing capacity is expected to support more efficient growth, and the autonomous program is accelerating. We expect Tesla’s growing vehicle offering, battery technology, and energy businesses to drive meaningful growth opportunities.”