4 China Rebound Stocks to Buy According to Jim Cramer

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 80     

Tesla, Inc. (NASDAQ:TSLA) markets electric vehicles and clean energy solutions. In mid-May, Cramer highlighted that the market was placing “too much fear” around names like Tesla, Inc. (NASDAQ:TSLA) in light of their dependence on China. Cramer noted that the firm had delivered during the pandemic and advised investors to stick with the company. He predicted that the firm would do a lot more business in China as virus restrictions were eased and pent-up travel demand increased car sales. 

On June 30, Goldman Sachs analyst Mark Delaney maintained a Buy rating on Tesla, Inc. (NASDAQ:TSLA) stock with a price target of $1,000, underlining that the fast-charging network of the firm was a key asset of the company with a $3 billion revenue opportunity. 

At the end of the first quarter of 2022, 80 hedge funds in the database of Insider Monkey held stakes worth $11 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 91 in the previous quarter worth $12 billion.

Here is what Grantham Mayo Van Otterloo & Co. LLC has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter:

“To put the demand growth for clean energy materials into perspective, let’s look at Tesla, Inc. (NASDAQ:TSLA). At its Battery Day last year, Tesla, Inc. (NASDAQ:TSLA) 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.”