5 Risky Stocks to Buy Today

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 72

Tesla, Inc. (NASDAQ:TSLA) is a Texas-based designer, manufacturer, and seller of electric vehicles led by Elon Musk.

Emmanuel Rosner at Deutsche Bank increased the target price for Tesla, Inc. (NASDAQ:TSLA) from $375 to $400 and maintained a Buy rating on the stock in an investment note issued on September 16. The analyst anticipates an expansion in the company’s gross profit margin during 2023. This would be driven by significant cost benefits due to the ramp-up in production from the Texas and Berlin gigafactory and the impact of the IRA related to US manufactured battery production credit coming into effect.

Tesla, Inc.’s (NASDAQ:TSLA) improvement in the gross profit margin slowed down in 2022 due to cost-push inflation and inefficiencies at the Chinese gigafactory due to the COVID-19-related lockdowns. Rosner now anticipates gross profit margin to expand by three percentage points (ppts) in 2023.

In its Q1 2022 investor letter, Fiduciary Management shared its stance on Tesla, Inc. (NASDAQ:TSLA). Here’s what the firm said:

“Remarkably, the Nasdaq-100 and Russell 2000 indices are up 6.25% and 3.90% through 3/31/22, respectively, since the war started. Tesla, Inc. (NASDAQ:TSLA) went up 57% from its low on February 24 ($700) to the close on March 29th ($1099), which equates to an advance of $413 billion. To put that in perspective, the 24-trading day gain in Tesla was greater than the entire market value of Walmart, Inc.! Tesla trades for 120 times estimated 2022 GAAP2 earnings, compared to Walmart’s (NYSE:WMT) 21.8 multiple (1/2023 fiscal year).”

As of Q2 2022, Tesla, Inc. (NASDAQ:TSLA) was held by 72 hedge funds.