Here’s a Reason to Stay Optimistic in Elon Musk’s Tesla Inc. (TSLA)

Alger, an investment management firm, published its “Alger Spectra Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter of 2021, the largest portfolio sector weightings were Information Technology and Consumer Discretionary. The Health Care sector was the largest sector overweight and Consumer Staples was the largest sector underweight. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Alger Spectra Fund, in its Q4 2021 investor letter, mentioned Tesla, Inc. (NASDAQ: TSLA) and discussed its stance on the firm. Tesla, Inc. is a Palo Alto, California-based vehicle manufacturing company with a $922.3 billion market capitalization. TSLA delivered a -13.09% return since the beginning of the year, while its 12-month returns are up by 4.00%. The stock closed at $918.40 per share on January 25, 2022.

Here is what Alger Spectra Fund has to say about Tesla, Inc. in its Q4 2021 investor letter:

“Tesla is an electric vehicle (EV) manufacturer with a significant technology lead in its large and rapidly growing addressable market. Tesla is a consequential transportation company because it is setting the pace for industry innovation over the foreseeable future. It has potential to maintain its lead as it ramps up auto production and battery capacity. We are optimistic about EV innovation, adoption and Tesla’s growth prospects. The shares contributed to portfolio performance as Tesla successfully increased production of new model S and X units driving a richer revenue mix as the prices of these vehicles are higher and the cost to produce lower than earlier versions. Earnings estimates climbed for Tesla as pricing for vehicles in backlog has increased. Further, as Tesla’s newer, more efficient factories increase production, unit costs may potentially decline relative.”

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Our calculations show that Tesla, Inc. (NASDAQ: TSLA) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. TSLA was in 60 hedge fund portfolios at the end of the third quarter of 2021, compared to 60 funds in the previous quarter. Tesla, Inc. (NASDAQ: TSLA) delivered a -9.82% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on TSLA in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.