Cathie Wood’s Fund Starts to Rebound: 5 Stocks to Watch

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 80  

Gain in Share Price Over Past Month as of July 14: 7.31%   

Tesla, Inc. (NASDAQ:TSLA) markets electric vehicles and clean energy solutions. The latest regulatory data shows that ARK owned close to 1.4 million shares of Tesla, Inc. (NASDAQ:TSLA) at the end of March 2022 worth $1 billion, representing 6.47% of the value of the fund’s 13F portfolio. On July 13, news agency Reuters reported that Panasonic, a key EV battery supplier for Tesla, was seeking to increase the energy density of each battery it supplies to the EV maker by 20% by the end of this decade. The change would boost the range of a Tesla EV by over 100 kilometers. 

On July 13, Truist analyst William Stein initiated coverage of Tesla, Inc. (NASDAQ:TSLA) stock with a ‘Buy’ rating and a price target of $1,000, backing the firm to “capture the pole position” in terms of unit share among EV auto makers and sell 10 million units per year by 2030. 

At the end of the first quarter of 2022, 80 of the hedge funds that are tracked by the database of Insider Monkey held stakes worth $11 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 91 funds with $12 billion in holdings in Q4 2021.

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.”

You can also take a peek at 10 Best Stocks for Animal Lovers and 10 Best Nickel Stocks to Buy Now.

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