In this article, we discuss the 5 EV stocks hedge funds are buying instead of Tesla. If you want to read our detailed analysis of these stocks, go directly to Hedge Funds are Selling Tesla and Buying These 10 EV Stocks Instead.
5. Plug Power Inc. (NASDAQ:PLUG)
Number of Hedge Fund Holders in Q2: 34
Number of Hedge Fund Holders in Q1: 25
Plug Power Inc. (NASDAQ:PLUG) is ranked fifth on our list of 10 EV stocks hedge funds are buying instead of Tesla. The company provides energy solutions to the electric mobility and stationary power markets. It is headquartered in New York.
On September 23, investment advisory Piper Sandler upgraded Plug Power Inc. (NASDAQ:PLUG) stock to Overweight from Neutral with a price target of $33, noting the recent pullback in the share price of the firm was a buying opportunity for investors.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Plug Power Inc. (NASDAQ:PLUG) with 14 million shares worth more than $507 million.
In its Q2 2020 investor letter, Massif Capital, an asset management firm, highlighted a few stocks and Plug Power Inc. (NASDAQ:PLUG) was one of them. Here is what the fund said:
“We also closed our short position in Plug Power this quarter as the market was subsumed with enthusiasm over their recent acquisitions, resulting in an almost 80% rally in the stock over ten trading days. Our decision to exit was painful at the time as we were forced to reconcile with a collective exuberance that was (and is, in our opinion) not grounded reality. In hindsight, it was the correct decision as we avoided most of its recent vertical trajectory.”
4. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders in Q2: 34
Number of Hedge Fund Holders in Q1: 28
NIO Inc. (NYSE:NIO) is a China-based company that makes and sells smart electric vehicles. It is placed fourth on our list of 10 EV stocks hedge funds are buying instead of Tesla.
On August 12, investment advisory Bank of America maintained a Buy rating on NIO Inc. (NYSE:NIO) stock with a price target of $62, raising the 2022 volume sales forecast for the firm and appreciating the “solid” third quarter guidance numbers.
At the end of the second quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $2 billion in NIO Inc. (NYSE:NIO), up from 28 in the preceding quarter worth $1.3 billion.
In its Q2 2020 investor letter, McLain Capital, an asset management firm, highlighted a few stocks and NIO Inc. (NYSE:NIO) was one of them. Here is what the fund said:
“Nio, Inc. (NIO): It’s stock up 360% since the beginning of June on no news, and one of our more troublesome short positions, the Chinese electric vehicle manufacturer is valued at a whopping $17bln on trailing revenue of only $1.1bln. In 2019, the business ran a -17% gross margin, a -140% EBITDA margin & burned ~$1.5bln in cash in 2019. The stock has become one of the most popular stocks among retail traders with approximately 250,000 accounts holding the name just on the popular Robinhood trading platform.”
3. Magna International Inc. (NYSE:MGA)
Number of Hedge Fund Holders in Q2: 39
Number of Hedge Fund Holders in Q1: 34
Magna International Inc. (NYSE:MGA) is a Canada-based company that makes and sells subsystems and modules for original equipment manufacturers of vehicles. It is ranked third on our list of 10 EV stocks hedge funds are buying instead of Tesla.
On June 23, investment advisory Goldman Sachs upgraded Magna International Inc. (NYSE:MGA) stock to Buy from Neutral and raised the price target to $120 from $97, noting the bullish case was supported by the ability of the firm to support new market entrants.
At the end of the second quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $576 million in Magna International Inc. (NYSE:MGA), up from 34 in the previous quarter worth $671 million.
2. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders in Q2: 55
Number of Hedge Fund Holders in Q1: 49
Ford Motor Company (NYSE:F) is placed second on our list of 10 EV stocks hedge funds are buying instead of Tesla. The company operates as an automobiles manufacturer and is headquartered in Michigan.
On July 16, investment advisory Bank of America reiterated a Buy rating on Ford Motor Company (NYSE:F) stock and raised the price target to $18 from $17. John Murphy, an analyst at the advisory, issued the ratings update.
At the end of the second quarter of 2021, 55 hedge funds in the database of Insider Monkey held stakes worth $2.10 billion in Ford Motor Company (NYSE:F), up from 49 in the preceding quarter worth $2.19 billion.
In its Q1 2020 investor letter, Greenlight Capital Fund, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“General Motors (GM) was a disappointment. The damage from last year’s strike consumed most of the cash flow GM would have otherwise generated in 2019. We had expected a strong bounce back in earnings and cash flow in 2020, but the annual guidance, while meeting Wall Street expectations, was worse than we expected. Further, the cash burned during the strike needed to be re-earned in order to protect GM’s investment grade rating. Pre-crisis, there would have been, at best, a minimal share repurchase late in the year. At the analyst day, our hopes that 2020 would finally be the year were dashed. We sold our stock. Over our five-year holding period, we made a 9.6% IRR on GM. In the difficult environment, its most comparable peer, Ford, lost about half its value.”
1. Freeport-McMoRan Inc. (NYSE:FCX)
Number of Hedge Fund Holders in Q2: 76
Number of Hedge Fund Holders in Q1: 68
Freeport-McMoRan Inc. (NYSE:FCX) is ranked first on our list of 10 EV stocks hedge funds are buying instead of Tesla. The company operates as a mining firm with significant interests in the mining of materials critical to the EV industry. It is headquartered in Arizona.
In May, investment advisory Jefferies maintained a Buy rating on Freeport-McMoRan Inc. (NYSE:FCX) stock and raised the price target to $60 from $55, identifying higher copper price forecasts and earnings estimates as the reasons behind the target raise.
At the end of the second quarter of 2021, 76 hedge funds in the database of Insider Monkey held stakes worth $3.8 billion in Freeport-McMoRan Inc. (NYSE:FCX), up from 68 in the preceding quarter worth $3.2 billion.
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