Goldman Sachs’ List Of Stocks That Hedge & Mutual Funds Love & Hate: 28 Stocks On The Mutual and Hedge Funds Radar

25. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders In Q2 2024: 85

Category: Shorted by HFs and underweight among mutual funds

Tesla, Inc. (NASDAQ:TSLA) is the world’s biggest pure play electric vehicle company. This means that the firm is significantly ahead of rivals when it comes to manufacturing efficiencies, but it also means that Tesla, Inc. (NASDAQ:TSLA) is at the mercy of electric vehicle demand. This effect is pronounced as 84% of the firm’s revenue comes through EV sales, and it makes it unsurprising that Tesla, Inc. (NASDAQ:TSLA)’s shares are down 11.78% year to date. Additionally, the narrative surrounding the firm has now diversified from simple manufacturing advantages to its ability to produce a low cost EV (dubbed the Model 2 or 2.5 by the market), its plans for FSD, and the Cybercab. Tesla, Inc. (NASDAQ:TSLA) needs to convince Wall Street that its plans have solid financial footing, or the shares could see more turbulence as they did after the firm’s We, Robot event which led to the stock tumbling by 8.8% as investor thirst for financial specifics was not quenched.

Baron Funds mentioned Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter. Here is what the fund said:

“As discussed in the Fund’s prior shareholder letter, the fears about Tesla’s products were misplaced. Instead of the company being exclusively dependent on limited vehicle models and software advancement, the company announced it will more rapidly introduce products that appeal to a wider audience. It also demonstrated that its price reductions were the result of efficiencies rather than only to spur demand. Margins exceeded expectations. And the company’s integration of its hardware with proprietary AI software should facilitate full self-driving capabilities and subsequent new revenue streams. This integration of hardware with software creates a dynamic growth company as it more fully explores its potential with Optimus, humanoid robotics. The combination of these catalysts resulted in Tesla’s stock increasing meaningfully and rapidly in the second half of the quarter. This stock price momentum has continued into the next period.”