5 Trending Stocks This Week

4. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 80

Tesla, Inc. (NASDAQ:TSLA) is trending this week after the US Senate approved the Inflation Reduction Act over the weekend. The bill will provide an EV tax credit for nearly a decade as a way to safeguard the environment. The US government has renewed the $7,500 EV tax credit till the end of 2032. However, there have been some amendments to qualify for this tax credit. The EV eligible for tax credit should be assembled in North America, and the key materials in the battery must be from the US or a nation that has a free-trade agreement with the US. Tesla, Inc. (NASDAQ:TSLA) is expected to be a beneficiary of this development due to the presence of its manufacturing facilities in the US.

Here’s what Fiduciary Management said about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2022 investor letter:

“Remarkably, the Nasdaq-100 and Russell 2000 indices are up 6.25% and 3.90% through 3/31/22, respectively, since the war started. Tesla, Inc. (NASDAQ:TSLA) went up 57% from its low on February 24 ($700) to the close on March 29th ($1099), which equates to an advance of $413 billion. To put that in perspective, the 24-trading day gain in Tesla was greater than the entire market value of Walmart, Inc.! Tesla trades for 120 times estimated 2022 GAAP² earnings, compared to Walmart’s (NYSE:WMT) 21.8 multiple (1/2023 fiscal year).”

Of the 912 hedge funds in Insider Monkey’s database, 80 funds held a stake in Tesla, Inc. (NASDAQ:TSLA) at the end of Q1 2022.