2. Tesla Inc. (NASDAQ:TSLA)
Number of Hegde Fund Investors: 85
Jim Cramer responded to a viewer’s question about Tesla Inc. (NASDAQ:TSLA) by emphasizing his long-term belief in the stock’s strength. The viewer noted that despite what others say, they trust Tesla Inc. (NASDAQ:TSLA)’s potential. Cramer agreed, pointing out that Elon Musk’s leadership has redefined Tesla Inc. (NASDAQ:TSLA) as a technology company rather than just a car manufacturer.
“I believe Tesla is a strong stock. What’s happening now is that Elon Musk is seen as the master, positioning Tesla as a technology company rather than just a car company. People hang on to every word he says without showing any rationality. They don’t consider that self-driving cars might not happen as he predicts. They just assume that if he says it, it must be right. We all wish we had that level of confidence, don’t we?”
Tesla Inc. (NASDAQ:TSLA)’s Q2 2024 earnings report shows strong performance, with revenue hitting $26.1 billion, a 22% increase from last year, and net income rising by 17% to $2.8 billion. This growth highlights Tesla Inc. (NASDAQ:TSLA)’s ability to effectively scale its operations and stay profitable despite market challenges. Tesla Inc. (NASDAQ:TSLA) leads in electric vehicle innovation with the new 4680 battery cell, which improves vehicle range and lowers costs, and advanced Full Self-Driving (FSD) technology, positioning Tesla Inc. (NASDAQ:TSLA) as a leader in autonomous driving.
Tesla Inc. (NASDAQ:TSLA)’s global expansion is also significant, with new Gigafactories in Berlin and Shanghai, the latter expected to produce 500,000 vehicles annually. Strategic partnerships, like those with Panasonic, enhance Tesla Inc. (NASDAQ:TSLA)’s production and R&D capabilities. With the global trend shifting towards sustainable energy and electric vehicles, driven by supportive regulations and rising consumer demand, Tesla Inc. (NASDAQ:TSLA) is well-positioned to capitalize on these changes. Overall, Tesla Inc. (NASDAQ:TSLA)’s strong financial performance, cutting-edge technology, and strategic growth plans indicate a bright future and continued leadership in the market.
Baron Partners Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles, related software and components, and solar and energy storage products. The stock contributed as Tesla continued to drive vehicle manufacturing costs lower, accelerate the launch of new models, and invest heavily in its lucrative AI initiatives. Shareholders reaffirmed the CEO’s compensation plan, alleviating personnel and legal uncertainties. Despite material operational complexities resulting in significant shutdowns of key manufacturing facilities and lower sales volume, Tesla presented better-than-expected margins in the quarter. It expects to launch a lower cost model as soon as late 2024, which should result in accelerated revenue growth, reduced manufacturing costs, and increased factory utilization. The company continued to advance its autonomous driving capabilities, expanding its already significant data centers and developing its humanoid robot Optimus. These investments increased confidence in the attractive growth opportunities that remain ahead.”
