5 Best Car Stocks To Buy Right Now

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 82

Tesla, Inc. (NASDAQ:TSLA) ranks 2nd on our list of the best auto stocks. On February 14, Tesla, Inc. (NASDAQ:TSLA) gained in post-market trading after Elon Musk revealed in an SEC filing that he held a 20.5% stake in the company as of December 31, 2023. The reported value of Musk’s stake is just over $120 billion, surpassing the combined market caps of General Motors and Ford Motor. Musk has expressed a desire to increase his voting position in Tesla to 25% to play a more significant role in shaping the future of the company’s AI business.

According to Insider Monkey’s fourth quarter database, 82 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA), compared to 81 funds in the last quarter. Philippe Laffont’s Coatue Management is a prominent stakeholder of the company, with a $1 billion position. 

O’keefe Stevens Advisory stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its fourth quarter 2023 investor letter:

“In my Q4 2022, l made three predictions: 1. One of our top 25 holdings gets acquired 2. TSLA is a sub $200B market cap by the end of 2023 3. Crypto, the final blow.

Tesla, Inc. (NASDAQ:TSLA) is a sub $200B market cap by the end of 2023. Grade: D. TSLA performed contrary to expectations, appreciating approximately 100% in 2023 and ending the year with an $880 billion market cap. We were “just a bit outside,” but I’m not convinced our reasoning was flawed.

The typical strong correlation between earnings estimates and stock prices did not hold for TSLA during the year. Positive revisions suggest a company outperformed expectations, resulting in a higher price/valuation. Negative revisions suggested estimates were too high, and the stock should decline to meet a weaker outlook…” (Click here to read the full text)

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