5 Best Self-Driving Stocks To Invest In

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 80

Tesla, Inc. (NASDAQ:TSLA) is the world’s premier electric vehicle manufacturer and seller and it is widely credited to have injected fresh life into the sector after overcoming nearly unsurmountable manufacturing difficulties. It also has one of the most advanced autonomous driving platforms in the market, dubbed Full Self Driving (FSD), which is a key reason behind its stellar market valuation.

Tesla, Inc. (NASDAQ:TSLA) is one of the few companies in the world that does not have to worry about the demand for its products. Instead, a key hurdle for the company is its vehicle price, as more affordable cars stand a better chance of market penetration and on this front, its latest quarterly results show a positive trend. During the quarter, Tesla, Inc. (NASDAQ:TSLA)’s production cost decreased by 10% and is on track for further drops. Finally, the company is also increasing production across its factories in Berlin and Fremont, allowing it to meet more of its demand.

Canaccord raised Tesla, Inc. (NASDAQ:TSLA)’s share price target to $881 from $815 in August 2022, sharing that the company is leading in a variety of areas that make it a “sustainability behemoth”. Insider Monkey studied 912 hedge fund holdings for this year’s first quarter to discover that 80 had held a stake in the company.

Tesla, Inc. (NASDAQ:TSLA)’s largest investor in our database is Jim Simons’s Renaissance Technologies which owns 748,475 shares that are worth $504 million.

Mentioning the company in its Q1 2022 investor letter, Baron Funds outlined that:

“During the first quarter, we bought back shares in Tesla, Inc., which designs, manufactures, and sells electric vehicles, solar products, energy storage solutions, and batteries. We believe that despite the run in the stock over the last few years, Tesla presents a favorable risk/reward profile and remains a Big Idea with only about 1% market share of the automotive market. Since we bought the stock during the first quarter, shares increased 27.1%, despite a complex supply-chain environment, on continued revenue growth and record profitability. Robust demand and operational optimization allow the company to offset inflationary pressures while vertical integration provides flexibility around supply bottlenecks. Moreover, we expect new localized manufacturing capacity to drive additional efficiencies while software initiatives, including the autonomous driving program, are accelerating, offering valuable optionality to the stock.”