5 Best Stocks to Buy According to DE Shaw

4. Tesla, Inc. (NASDAQ:TSLA)

DE Shaw’s Stake Value: $1,185,119,000

Percentage of DE Shaw’s 13F Portfolio: 1.10%

Number of Hedge Fund Holders: 80

Tesla, Inc. (NASDAQ:TSLA) was incorporated in 2003 and is headquartered in Austin, Texas. The company manufactures and sells electric vehicles and battery storage systems in the United States, China, and internationally. In the first quarter of 2022, DE Shaw held over one million Tesla, Inc. (NASDAQ:TSLA) shares, worth $1.18 billion, representing 1.10% of the total portfolio. 

On July 14, Morgan Stanley analyst Adam Jonas reiterated an Overweight rating on Tesla, Inc. (NASDAQ:TSLA) but lowered the price target on the shares to $1,150 from $1,200. He is making “material cuts” to forecasts across his autos and mobility coverage, especially in FY23, to factor in decreasing growth and higher credit headwinds, added the analyst. 

Among the hedge funds tracked by Insider Monkey, 80 funds were long Tesla, Inc. (NASDAQ:TSLA) at the end of the first quarter of 2022, compared to 91 funds in the prior quarter. ARK Investment Management is a prominent shareholder of the company, with roughly 1.6 million shares worth $1.71 billion. 

Here is what GMO LLC has to say about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter:

“To put the demand growth for clean energy materials into perspective, let’s look at Tesla (NASDAQ:TSLA). At its Battery Day last year, Tesla projected three terawatt hours of lithium-ion battery capacity needed in 2030 for the EVs and storage they expect to produce. To reach this target, Tesla alone would gobble up approximately 75% of the world’s current nickel production and four times the world’s current lithium production. These numbers are astounding enough, but when one considers that EVs currently represent just 15% of global nickel demand and about 45% of lithium demand and that Tesla will likely be producing only a small proportion of the world’s EVs in 2030, the implications are staggering. Clean energy materials companies will make a lot more money in the decades to come than they ever have both because they will be selling a lot more metric tons of material and because there are certain to be shortages where supply can’t keep up with the rapidly growing demand.”