2. Tesla, Inc. (NASDAQ:TSLA)
3-year Revenue Growth: 158.3%
Tesla, Inc. (NASDAQ:TSLA) is one of the premier high growth stock picks of Motley Fool. The hedge fund owned 68,915 shares of Tesla, Inc. (NASDAQ:TSLA) in the fourth quarter of 2022, worth $8.48 million and representing 0.95% of the total 13F securities. The average 3-year revenue growth for Tesla between 2020 and 2022 came in at 158.3%. Thanks to Tesla, Inc. (NASDAQ:TSLA)’s nearly 100% surge since the beginning of 2023, Elon Musk has regained his position as the number one billionaire on the Bloomberg Billionaire Index as of February 28.
On February 27, according to Barclays analyst Dan Levy, Tesla, Inc. (NASDAQ:TSLA)’s upcoming investor day may not significantly impact the stock’s price given its recent surge, and may even trigger a sell-off. Nevertheless, the analyst suggests that the event is likely to reinforce Tesla, Inc. (NASDAQ:TSLA)’s long-term prospects, further solidifying the firm’s Overweight rating and $275 price target.
According to Insider Monkey’s Q4 data, 91 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA), compared to 88 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is a prominent stakeholder of the company, with 7.5 million shares worth $926.2 million.
Baron Partners Fund made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2022 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) declined 54% in the quarter and detracted 26.62% from the Fund’s overall performance. We initiated our position in Tesla in February 2014 at a split-adjusted price of $11.91. Over the subsequent two years, we acquired 16.65 million shares for an average split-adjusted price of $14.22. At the time of our final purchase in February 2016, the stock represented 9.6% of the Fund’s total investments.
Tesla produced approximately 35,000 vehicles in 2014, the year of our initial purchase. In 2022, it produced 1.37 million vehicles. Not only has its production grown tremendously, but it has also significantly increased profitability per vehicle. Tesla has expanded from producing high performance electric vehicles for wealthy aficionados to a company that produces affordable luxury cars for a sizable audience. In turn, it has transformed its industry. Investors rewarded this expansion in both production and profits, and the stock price increased to $265.25 at the end of the third quarter. Since 2016, we sold 4.5 million shares, or 27.0% of the original holding, at an average price of $218.39.
Investors have recently become concerned about many external factors. Elon Musk is Tesla’s founder and CEO. His purchase of Twitter has negatively impacted the perception of Tesla’s brand in the short term. China’s COVID policies and outbreak have paused purchases and production in the company’s largest region. Global recessionary fears and upcoming Inflation Reduction Act incentives also caused some to delay new vehicle purchases in various markets…” (Click here to read the full text)
