Mario Gabelli is Selling These 5 Stocks

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 60

Tesla, Inc. (NASDAQ:TSLA) is an American electric vehicle maker and provider of clean and renewable energy. In the third quarter of 2021, 60 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA), holding stakes worth $10.6 billion. Coatue Management held a prominent stake in the company as of Q3 2021, with 1.12 million shares worth roughly $874 million. 

Mario Gabelli first invested in Tesla, Inc. (NASDAQ:TSLA) back in Q4 2015, and sold out of his shares entirely in Q3 2016. He again purchased Tesla, Inc. (NASDAQ:TSLA) stock in Q1 2020, and discarded his position in the company in Q4 2020. In the second quarter of 2021, Gabelli bought a $442,000 stake in Tesla, Inc. (NASDAQ:TSLA), which he disposed of in Q3 2021. 

On January 26, Tesla, Inc. (NASDAQ:TSLA) reported its Q4 results. The company’s EPS for the period came in at $2.54, beating estimates by $0.16. The Q4 revenue jumped about 65% year-on-year to $17.72 billion, surpassing estimates by $1.08 billion. 

Morgan Stanley analyst Adam Jonas on February 7 noted that while most auto investors “still struggle” with the idea that Tesla, Inc. (NASDAQ:TSLA) could ever be bigger than either General Motors Company (NYSE:GM) or ​​Ford Motor Company (NYSE:F), he expects Tesla, Inc. (NASDAQ:TSLA) revenues to be larger than the pair combined by 2027. The analyst has an Overweight rating and a $1,300 price target on Tesla, Inc. (NASDAQ:TSLA) shares.

Here is what Alger Spectra Fund has to say about Tesla, Inc. (NASDAQ:TSLA) 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 the backlog has increased. Further, as Tesla’s newer, more efficient factories increase production, unit costs may potentially decline relative.”