Reddit’s WallStreetBets is Buying These 5 Stocks in September

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 72

WallStreetBets is buying Tesla, Inc. (NASDAQ:TSLA) shares in September as the community thinks it can benefit from the ongoing energy crisis in Europe.

Another thing that caught Redditors’ attention about Tesla, Inc. (NASDAQ:TSLA) in September is the recent announcement made by the company to build a lithium refining facility in Texas. On September 9, CNBC reported that Tesla, Inc. (NASDAQ:TSLA) is planning on building a lithium hydroxide refining facility in Texas to allow for cheaper batteries for its cars. The company is currently evaluating the feasibility of the project and pending approval for tax breaks from Texas.

On September 6, Wolfe Research analyst Rod Lache upgraded Tesla, Inc. (NASDAQ:TSLA) to a buy-side Outperform from Peer Perform and gave a price target of $360 on the stock. The analyst also raised his EPS estimates for the company, to $7.40 from $6.12 for 2023, and to $16 from $12.70 for 2025.

At the close of Q2 2022, 72 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA) and held stakes worth $7.16 billion in the company. As of June 30, ARK Investment Management is the most prominent shareholder in Tesla, Inc. (NASDAQ:TSLA) and owns over 1.4 million shares of the company.

Here is what GMO LLC had to say about Tesla, Inc. (NASDAQ:TSLA) in its first-quarter 2022 investor letter:

“To put the demand growth for clean energy materials into perspective, let’s look at Tesla (NASDAQ:TSLA). At its Battery Day last year, Tesla projected three terawatt hours of lithium-ion battery capacity needed in 2030 for the EVs and storage they expect to produce. To reach this target, Tesla alone would gobble up approximately 75% of the world’s current nickel production and four times the world’s current lithium production. These numbers are astounding enough, but when one considers that EVs currently represent just 15% of global nickel demand and about 45% of lithium demand and that Tesla will likely be producing only a small proportion of the world’s EVs in 2030, the implications are staggering. Clean energy materials companies will make a lot more money in the decades to come than they ever have both because they will be selling a lot more metric tons of material and because there are certain to be shortages where supply can’t keep up with the rapidly growing demand.”