5 Stocks That Can Begin to Rebound in 2023

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 72

YTD Share Price Decline as of August 29: 29.21%

Tesla, Inc. (NASDAQ:TSLA) stock has plummeted over 29% year-to-date. However, the company has potential to regain its momentum heading into 2023, supported by the transition to clean energy, corporations shifting to electric vehicles to reach net-zero carbon emissions, and the Inflation Reduction Act of 2022. 

On August 29, Tesla, Inc. (NASDAQ:TSLA)’s Elon Musk announced that he aims for the commercialization of self-driving Teslas by the end of this year. Musk said the goal is to have a large release in the United States, and potentially in Europe if the company gets timely regulatory approvals.

Deutsche Bank analyst Emmanuel Rosner reaffirmed a ‘Buy’ rating on Tesla, Inc. (NASDAQ:TSLA) on August 29 but lowered the price target on the shares to $375 from $1,125. The price target change factors in the firm’s 3-for-1 stock split. The analyst believes that Tesla, Inc. (NASDAQ:TSLA)’s new vehicle production in Europe “could be a game-changer”. The plan could make Tesla an “even more formidable competitor in the region, while likely boosting the company’s gross margins,” the analyst told investors in a research note. He thinks 2023 “could be a pivotal year” for Tesla, Inc. (NASDAQ:TSLA) and he sees the stock “as one of the most attractive stories in the autos sector”.

Among the hedge funds tracked by Insider Monkey, Cathie Wood’s ARK Investment Management is a significant stakeholder of the company, owning 1.4 million shares worth over $1 billion. Overall, 72 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA) at the end of Q2, compared to 80 funds in the earlier quarter. 

Here is what Grantham Mayo Van Otterloo & Co. 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, Inc. (NASDAQ:TSLA). At its Battery Day last year, Tesla, Inc. (NASDAQ:TSLA) 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.”