Forget Rivian Automotive Inc (RIVN): 5 EV Stocks to Buy for Long-Term Gains

3. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 60    

Tesla, Inc. (NASDAQ:TSLA) is perhaps the most-well known EV stock on the market. The stock went on an incredible rally in the past few months but shares have declined sharply since the start of 2022 as concerns around inflation grow and batter EV firms. However, analysts remain bullish on the long-term potential of the firm. On January 31, Credit Suisse analyst Dan Levy upgraded Tesla, Inc. (NASDAQ:TSLA) stock to Outperform from Neutral with a price target of $1,025, noting the recent sell-off of the shares had created an “attractive entry point” given the “growth story” of the EV maker. 

Hedge funds concur with analysts with regards to Tesla, Inc. (NASDAQ:TSLA) as well. At the end of the third quarter of 2021, 60 hedge funds in the database of Insider Monkey held stakes worth $10 billion in Tesla, Inc. (NASDAQ:TSLA), the same as in the previous quarter worth $9 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.”