1. Tesla, Inc. (NASDAQ:TSLA)
Market Capitalization as of September 29: $784.06 billion
Tesla, Inc. (NASDAQ:TSLA) is a multinational American company focusing on automotive and clean energy, with its headquarters located in Austin, Texas. The company specializes in the design and production of electric vehicles, stationary battery energy storage solutions ranging from household to grid-scale, as well as solar panels, solar shingles, and associated products and services.
Tesla, Inc. (NASDAQ:TSLA) commenced the construction of its lithium refinery in the broader Corpus Christi region of Texas in May 2023. The completion of this facility will signify a substantial financial investment exceeding $1 billion in the Southwest Texas vicinity. This significant investment underscores the company’s proactive strategy to ensure a consistent supply of high-grade lithium hydroxide suitable for batteries within North America. Moreover, Tesla, Inc. (NASDAQ:TSLA) is already engaged in the production of lithium-ion batteries at its Gigafactories, further solidifying its position as one of the top lithium stocks for investment.
According to Insider Monkey’s first quarter database, 79 hedge funds were bullish on Tesla (NASDAQ:TSLA), compared to 82 funds in the prior quarter. Catherine D. Wood’s ARK Investment Management is a prominent stakeholder of the company, with 4.8 million shares worth $1.26 billion.
Here’s what Baron Funds said about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text).
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