5 Best Ethical Companies to Invest in According to Reddit

In this article, we will take a look at the 5 best ethical companies to invest in according to Reddit. To see more such companies, go directly to 13 Best Ethical Companies to Invest in According to Reddit.

5. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 91

While Tesla, Inc. (NASDAQ:TSLA)’s ESG rating has dropped over the past few months, the stock remains a popular choice of Redditors. The reason why Redditors believe Tesla, Inc. (NASDAQ:TSLA) is an ethical investing option is simple: the company is the leader in the EV space and is playing a key role in moving the world away from conventional engine cars that are the biggest polluters in the world.

Hedge funds are also bullish on Tesla, Inc. (NASDAQ:TSLA). As of the end of the fourth quarter of 2022, 91 hedge funds had stakes in Tesla, Inc. (NASDAQ:TSLA), up from 88 hedge funds in the previous quarter. The biggest hedge fund stakeholder of Tesla, Inc. (NASDAQ:TSLA) is Catherine D. Wood’s ARK Investment Management which owns a $1.1 billion stake in the company.

Polen Focus Growth Strategy made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2023 investor letter:

“The leading detractors to our relative performance were three companies we don’t own: NVIDIA, Apple, and Tesla, Inc. (NASDAQ:TSLA). In fact, not owning these three companies was a roughly 400-basis point headwind to our relative results versus the Russell 1000 Growth in the first quarter. We believe Tesla also has strong competitive advantages, at least on the auto side of the business, but we currently have some questions around the company’s leadership and the magnitude of its growth prospects.”