5 Best Lithium and Battery Stocks to Buy Today

Page 5 of 5

1. Tesla Inc. (NASDAQ: TSLA)

No of HFs: 67

Total Value of HF Holdings: $8 Billion

Tesla is now a very popular stock among hedge funds. Sure, there are still a few short sellers who make a lot of noise (see this short seller who thinks the stock is going to zero), a large number of hedge funds are very bullish about the stock. Here is what Worn Capital said about Tesla in its 2020 Q3 investor letter:

“A good example of riding our winners this year is Tesla, which we have studied down to the cellchemistry level since 2015. In August, for instance, the bid for Tesla increased some 70%. Was this increase in bid itself a reason to sell our ownership, or even to trim? No. Tesla continues to be dramatically undervalued relative to its long-term, multi-year intrinsic value, in our view. As I have discussed in previous letters, I believe Tesla is perhaps the single best investment opportunity in the market today: It is a true disruptor competing in vast end markets (transportation, trucking, energy storage) that are each worth trillions of dollars of potential market cap.

By 2025, I expect Tesla to be trading at multiples of where it’s currently priced today. Of course, month-to-month or even quarter-to-quarter we may see the prices bounce around, but we don’t attempt to time the market. As a rule, industry juggernauts in their early stages tend to be more volatile. That’s why we think in terms of years and not days: It gives us the flexibility of opportunity to make multiples on our invested capital.”

Please also see 30 Most Popular Stocks Among Hedge Funds: 2020 Q3 Ranking and 10 Best Growth Stocks to Buy Now According to Ray Dalio

Page 5 of 5