5 Best Environmental Stocks to Invest In

4. Tesla, Inc. (NASDAQ: TSLA)

Number of Hedge Fund Holders: 62

Total ESG Score: 31.3

Tesla, Inc. (NASDAQ: TSLA) ranks 4th on the list of 12 best environmental stocks to invest in. On top of being a market leader in the EV market, the company also promotes the use of solar energy as it manufactures and sells solar panels and solar energy storage products. Tesla, Inc. (NASDAQ: TSLA) produced and delivered over 200,000 electric vehicles in the second quarter of 2021. TSLA stock has offered more than 181% returns to investors in the past twelve months.

The company has a market cap of $654 billion. The company’s first-quarter revenue came in at $10.4 billion, up 74% from $5.98 billion in the same quarter in 2020. In April, Canaccord Genuity analyst Jed Dorsheimer upgraded Tesla, Inc. from Hold to Buy, with a price target of $1,071 compared to $419 previously. As of July 2, Tesla, Inc. (NASDAQ: TSLA) shares traded at $678.90 and have a P/E ratio of 680.26. 

At the end of the first quarter of 2021, 62 hedge funds in the database of Insider Monkey held stakes worth $10.01 billion in Tesla, Inc. (NASDAQ: TSLA), down from 68 the preceding quarter worth $12.3 billion. 

In the Q4 2020 Investor Letter, Baron Opportunity Fund highlighted a few stocks and Tesla Inc. (NASDAQ: TSLA) is one of them. Here is what the fund said:

“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, and energy storage solutions. The stock increased on strong financial results, including profitability that exceeded market forecasts and strong growth across different geographies and vehicle programs. Indeed, in the third quarter, Tesla delivered almost 140,000 total vehicles – with strong unit-level economics of 27.7% GAAP automotive gross profit margins – and another quarter of GAAP profitability and strong free cash flow (almost $1.4 billion). Recently, Tesla announced a record of over 180,000 total vehicle deliveries for the fourth quarter, effectively hitting its goal of 500,000 deliveries for the calendar year, a projection given before the COVID pandemic. In addition, we believe newly released full self-driving functionality should yield further improvements in unit economics and open exciting new growth opportunities. Lastly, Tesla joined the S&P 500 Index, a meaningful milestone that significantly expands the potential shareholder base.”