5 Best Volatile Stocks to Buy

4. Tesla, Inc. (NASDAQ: TSLA)

Number of Hedge Fund Holders: 68     

Tesla, Inc. (NASDAQ: TSLA) is a Palo Alto-based electric vehicle and clean energy firm owned by billionaire Elon Musk. It is placed fourth on our list of 10 best volatile stocks to buy. The firm is one of the biggest on the US stock market with a market cap of more than $568 billion and has returned more than 262% to investors over the past year. However, it is also one of the most volatile stocks on the market with a 52-week price range of $157-$900. Tesla markets battery storage on a massive scale in addition to EV and clean energy products.

On May 14, news agency Reuters reported that Tesla, Inc. (NASDAQ: TSLA) was in talks with Chinese battery firm EVE Energy to supply EV batteries for the production of cars at the Tesla plant in Shanghai amid a huge rise in demand for autos in the post pandemic economy.

At the end of the fourth quarter of 2020, 68 hedge funds in the database of Insider Monkey held stakes worth $12.3 billion in the firm, up from 67 in the preceding quarter worth $8.1 billion.

In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Tesla, Inc. (NASDAQ: TSLA) was one of them. Here is what the fund said:

“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.”