5 Best EV Materials Stocks to Buy Now

2. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 80    

Tesla, Inc. (NASDAQ:TSLA) makes and sells electric vehicles and clean energy equipment. The firm is the largest EV firm in the world, both in terms of market capitalization and production numbers, although Chinese automakers like BYD have been catching up to it in recent months. The firm also aims to make its own EV batteries. The firm is expected to benefit from a recent climate change bill passed by US lawmakers that has extended tax credits for EV owners and provided more subsidies to EV firms. 

On August 8, Canaccord analyst George Gianarikas maintained a Buy rating on Tesla, Inc. (NASDAQ:TSLA) stock and raised the price target to $881 from $815, noting that the firm had momentum and competitive lead from manufacturing to overshadow price concerns. 

At the end of the first quarter of 2022, 80 hedge funds in the database of Insider Monkey held stakes worth $11.2 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 91 in the previous quarter worth $12.9 billion.

Here is what ClearBridge Investments had to say about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2021 investor letter:

“Within the growth universe we target, emerging growth stocks – the category with the highest revenue growth rates – significantly underperformed the overall growth categories in 2021 after leading performance in 2020. The pull-through effect on digitization, online access across industries, and spending to modernize outdated corporate infrastructures accelerated trends in a highly compressed time frame. Much of that trend slackened in 2021 and shares of these companies, while showing good top-line growth, saw slowing appreciation from the blistering pace in the prior year. With that moderating growth, multiples decelerated from 2020 highs. Bucking the headwinds among our emerging growth names was Tesla, Inc. (NASDAQ:TSLA) which saw continued sales momentum from their leadership positions in the key growth areas of electric vehicles.”