3. Tesla Inc. (NASDAQ:TSLA)
Volume: 70.988 million
Average Volume (3-Month): 96.743 million
Number of Hedge Fund Holders: 85
Tesla Inc. (NASDAQ:TSLA) is an automotive and clean energy company known for its innovative and high-performance vehicles. It primarily focuses on electric cars, but it also produces solar panels and energy storage systems. It is a pioneer in the EV industry and has significantly contributed to the shift towards sustainable transportation. In 2023, 100% of its revenue was generated from sustainable products and services
The company’s FSD v12 vehicle, powered entirely by AI, has accumulated 300 billion miles of real-world driving experience. Beyond self-driving and AI training chips, its humanoid robot, Tesla Bot, has garnered significant attention for its potential applications.
Its home charging solution, Wall Connector, complements its extensive Supercharger network. By opening its Supercharger network to other EV companies and introducing the North American Charging Standard (NACS), Tesla Inc. (NASDAQ:TSLA) is maximizing the utilization of its charging infrastructure and solidifying its position in the EV ecosystem.
Revenue improved 2.3% year-over-year in Q2 2024. Automotive revenue increased 14% sequentially. Energy storage revenue doubled to reach $3 billion. Despite a slowdown in global EV sales, the company produced and delivered over 410,000 and 444,000 units, respectively, contributing 84% to total revenue. The company aims to ramp up production to 3 million vehicles by 2025.
The company’s expansion into the robotaxi market offers an exciting investment opportunity. The unveiling event is on October 10. As the world transitions to sustainable energy and EVs, its focus on innovation and technology positions it well to capitalize on the latest trends.
ClearBridge Small Cap Value Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“The strength in the stock market adds significantly to that enormous transfer of wealth, which one could argue is good for shareholders. But is it causal? That is, did the stock market do well because CEOs got large stock grants? Are the CEOs just the lucky recipients of a windfall when the market goes up and their employees perform well? Or do they require huge grants to do their jobs that no one else could possibly do as effectively?
Tesla, Inc. (NASDAQ:TSLA), and most of its shareholders, certainly think the latter is true. In 2018, Tesla’s board of directors crafted a pay package for CEO Elon Musk that would award him 12 tranches of 10-year, fixed-price options on 1% of company stock for every $50 billion in market cap the stock added. In total, the options would be for 304 million shares of the company at $23.34 a share. He would receive no other compensation, until or unless the board decided otherwise. Shareholders approved that pay package, and the stock added all that market cap and more, giving Musk the right to buy 10% of the company for $50 billion less than it was worth, adding to his existing 13% stake. Minority shareholders sued, and a court sided with them and expunged the package in January 2024. “The process leading to the approval of Musk’s compensation plan was deeply flawed,” ruled Judge Kathaleen McCormik of the Delaware Court of Chancery as part of a 200-page decision. It seemed like a long-awaited check on excessive compensation to one individual for the achievements of an entire company….” (Click here to read the full article)
