1. Tesla, Inc. (NASDAQ:TSLA)
Share Price Performance Since July 2021 Start: 11.14%
Number of Hedge Fund Investors In Q1 2024: 74
Tesla, Inc. (NASDAQ:TSLA) is the only WallStreetBets stock that is actually in the green since 2021. This is unsurprising, as, during this time, the firm has managed to prove its critics wrong and establish a dominant position in the global EV market through its robust production base. Tesla, Inc. (NASDAQ:TSLA) made 206,421 cars in Q2 2021 and doubled this figure to 433,371 cars in Q1 2024. During that time period, it set up two new factories – one in Germany and another in China. Tesla, Inc. (NASDAQ:TSLA) is also competing in the cutthroat Chinese electric vehicle market, and its heft coupled with a global production base allows it considerable advantages not only over Chinese companies in the Chinese market, but also globally since it can leverage its delivery and supply chains to gain an edge. Additionally, Tesla, Inc. (NASDAQ:TSLA) also benefits from a rather diversified business model that also focuses on energy storage. This business boomed during Q2 2024 when Tesla, Inc. (NASDAQ:TSLA) deployed 9.4GWh of energy storage products which set a new record in its history. The stock gained 20% in the first five days of July on the back of this news, despite the holidays.
Baron Funds mentioned Tesla, Inc. (NASDAQ:TSLA) in its Q1 2024 investor letter. Here is what the fund said:
Tesla, Inc. designs, manufactures, and sells electric vehicles (EVs), related software and components, and solar and energy storage products. Shares fell 29.3% in the first quarter as the core automotive segment is facing headwinds due to a complex macroeconomic environment, factory shutdowns, growing competitive risks in China, and vehicle price reductions which are pressuring gross margins. During the first quarter of 2024, production was also negatively impacted by the Red Sea maritime supply- chain interferences, sabotage in a Tesla factory’s power supply in Berlin, and a factory closure for the launch of the refreshed Model 3. We remain shareholders. Tesla commenced delivery of its highly anticipated Cybertruck pickup, which features new technologies within the car and its manufacturing lines. Tesla also launched version 12 of its Full Self Driving product, which shows significant progress from prior versions and increases the probability that Tesla’s data collection at scale, and verticalized software and hardware approach will position Tesla as a leader in the future for autonomous driving and shared mobility. We also expect energy storage sales to continue to grow over the coming years as the adoption of renewable energy continues. Lastly, we believe Tesla’s core automotive segment will recover with the company remaining a leader in the EV market, which continues to expand with EVs still accounting for only around 10% of vehicle sales globally.
TSLA’s rapid growth over the past years has stunned its biggest detractors. However, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None.
