5 Best Stocks of 2021

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 60  

Year-To-Date Gain: 74%    

No list about the best-performing stocks of the year would be complete without discussing Tesla, Inc. (NASDAQ:TSLA), the California-based EV maker that has crossed $1 trillion in market capitalization. Wedbush analyst Daniel Ives recently raised the price target on the stock to $1,800 from $1,500 and kept an Outperform rating, noting the expected rise in demand for EVs through next year and potential deals of the firm with ride-hailing and leasing services. 

On November 8, PepsiCo, one of the largest beverage firms in the world, announced that it would be taking the first deliveries of Tesla, Inc. (NASDAQ:TSLA) trucks for operations. PepsiCo had ordered 100 Tesla trucks as part of a plan to lower the carbon footprint of the company. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Tesla, Inc. (NASDAQ:TSLA) with 23 million shares worth more than $16 billion.  

Here is what Baron Partners Fund has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2021 investor letter:

“Tesla, Inc. designs, manufactures, and sells fully electric vehicles, solar products, energy storage solutions, and battery cells. The stock fell during the quarter as a result of general market dynamics and a potential production slowdown due to parts shortages. A refreshed S/X and China Model Y ramp could also have a negative impact on margins in early 2021. We anticipate strong growth and improved margins driven by new production capacity, manufacturing efficiencies, localization of its manufacturing and supply chain, and maturation of Tesla’s full self-driving technology.”