5 Best Automotive Stocks To Invest In Now

1. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 91

Tesla, Inc. (NASDAQ:TSLA) is one of the few automobile companies that has managed to steer through massive supply disruptions and emerge stronger than ever, having reported market-beating earnings for the fiscal first quarter of 2022 this April. The company’s revenues grew by 80.54% year over year and came in at $18.76 billion, outperforming market consensus by $917.76 million. Tesla, Inc. (NASDAQ:TSLA) reported earnings per share of $3.22, beating EPS estimates by $0.95. Moreover, as of May 10, Tesla, Inc. (NASDAQ:TSLA) shares have gained 29.62% over the past twelve months. Robust earnings and skyrocketing momentum make Tesla, Inc. (NASDAQ:TSLA) the best automotive stock to invest in now.

On April 22, 2022, Deutsche Bank analyst Emmanuel Rosner raised his price target on Tesla, Inc. (NASDAQ:TSLA) to $1,250 from $1,200 and reiterated a Buy rating on the shares, shortly after the company released its strong Q1 2022 earnings. Rosner contended that Tesla, Inc. (NASDAQ:TSLA) has yet again delivered industry-leading profitability despite a challenging operating environment and has managed to make inroads from strong demand and pricing while optimizing operational costs.

Hedge funds are betting bullishly on Tesla, Inc. (NASDAQ:TSLA). Insider Monkey found that by the end of the fourth quarter of 2021, 91 hedge funds were long Tesla, Inc. (NASDAQ:TSLA). The total stakes of these funds were valued at $12.91 billion, up from $10.64 billion in the third quarter of 2021 with 60 positions. The hedge fund sentiment for the stock is positive.

ARK Investment Management is the top shareholder in Tesla, Inc. (NASDAQ:TSLA) as of this March. According to Insider Monkey’s data, Catherine D. Wood’s hedge fund owns over 1.59 million shares of the leading EV maker, which amount to a stake value of $1.71 billion. The investment covers 7.17% of ARK Investment Management’s 13F portfolio.

Here is what Fiduciary Management had to say about Tesla, Inc. (NASDAQ:TSLA) in its “Small-Cap Equity” first-quarter 2022 investor letter:

“Remarkably, the Nasdaq-100 and Russell 2000 indices are up 6.25% and 3.90% through 3/31/22, respectively, since the war started. Tesla, Inc. (NASDAQ:TSLA) went up 57% from its low on February 24 ($700) to the close on March 29th ($1099), which equates to an advance of $413 billion. To put that in perspective, the 24-trading day gain in Tesla was greater than the entire market value of Walmart, Inc.! Tesla trades for 120 times estimated 2022 GAAP² earnings, compared to Walmart’s (NYSE:WMT) 21.8 multiple (1/2023 fiscal year).”

You can also look at 10 Best Auto Stocks to Buy Now and 11 Best Autonomous Vehicle Stocks To Buy Now.

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