Goldman Sachs EV and Battery Stocks: Top 5 Stock Picks

In this article, we discuss the top 5 Goldman Sachs EV and battery stocks. If you want to read our detailed discussion on the EV sector, head over to Goldman Sachs EV and Battery Stocks: Top 10 Stock Picks. 

5. Aptiv PLC (NYSE:APTV)

Goldman Sachs’ Stake Value: $361,694,445

Number of Hedge Fund Holders: 40

Aptiv PLC (NYSE:APTV) is involved in the production and distribution of different vehicle components. The company offers solutions related to electrical, electronic, and safety technologies for both the automotive and commercial vehicle sectors. Its operations are divided into two segments – Signal and Power Solutions, and Advanced Safety and User Experience. Aptiv PLC (NYSE:APTV) is one of the top Goldman Sachs EV and battery stocks. In Q2 2023, the firm owned a $361.7 million position in Aptiv PLC (NYSE:APTV). 

On August 3, Aptiv PLC (NYSE:APTV) reported a Q2 revenue of $5.2 billion and a non-GAAP EPS of $1.25, topping market expectations by $340 million and $0.23, respectively. Revenue increased 28% compared to the prior-year quarter. 

According to Insider Monkey’s second quarter database, 40 hedge funds were bullish on Aptiv PLC (NYSE:APTV), compared to 46 funds in the preceding quarter. Ian Simm’s Impax Asset Management is the biggest stakeholder of the company, with 6.13 million shares worth $625.6 million. 

TimesSquare U.S. Mid Cap Growth Strategy made the following comment about Aptiv PLC (NYSE:APTV) in its Q4 2022 investor letter:

“Aptiv PLC (NYSE:APTV), a designer and manufacturer of vehicle components for original equipment manufacturers, rose 19%. Results from the latest quarter were above expectations and management maintained the outlook for revenue growth on bookings strength. Management acknowledged that 2023 could be difficult to forecast due to macroeconomic headwinds.”

4. General Motors Company (NYSE:GM)

Goldman Sachs’ Stake Value: $385,993,989

Number of Hedge Fund Holders: 72

General Motors Company (NYSE:GM) is involved in the design, manufacture, and sales of trucks, crossovers, cars, and auto parts globally. The company also offers software-enabled services and subscriptions. These services include features like mobile apps for remote vehicle control, electric vehicle charging station location, vehicle diagnostics, voice assistants like Amazon Alexa and Google’s Voice Assistant, navigation services, SiriusXM with 360L, and 4G LTE wireless connectivity. It is one of the top EV and battery stocks in the Goldman Sachs portfolio. In Q2 2023, the firm held a position worth $386 million in General Motors Company (NYSE:GM). 

On July 25, General Motors Company (NYSE:GM) reported a Q2 non-GAAP EPS of $1.91 and a revenue of $44.75 billion, outperforming Wall Street estimates by $0.08 and $2.39 billion, respectively. 

According to Insider Monkey’s second quarter database, 72 hedge funds were bullish on General Motors Company (NYSE:GM), compared to 73 funds in the preceding quarter. Harris Associates held the largest position in the company, with 38.5 million shares worth $1.48 billion. 

Diamond Hill made the following comment about General Motors Company (NYSE:GM) in its Q3 2022 investor letter:

“Most recently, we initiated a position in General Motors Company (NYSE:GM), one of the largest automakers in the United States. Over the past several years, GM has taken steps necessary to focus the company on the most profitable segments and move into position to compete in an electrified and autonomous world. With the recent rise in interest rates there was a meaningful selloff in the auto industry, which presented us with an attractive entry point to a name we know well.”

3. Stellantis N.V. (NYSE:STLA)

Goldman Sachs’ Stake Value: $557,431,375

Number of Hedge Fund Holders: 27

Stellantis N.V. (NYSE:STLA) is a Netherlands-based auto manufacturer. On July 5, Stellantis N.V. (NYSE:STLA) introduced its global EV platform, starting with the STLA Medium, one of four planned platforms. This platform is designed for electric cars, crossovers, and SUVs. The STLA Medium 400V architecture enables quick charging from 20% to 80% in 27 minutes. Vehicles using this platform will have front-wheel and all-wheel drive options, with power output spanning from 160 kW to 285 kW. Stellantis N.V. (NYSE:STLA) is one of the top Goldman Sachs EV and battery stocks. In the second quarter of 2023, Goldman Sachs held 31.78 million shares of Stellantis N.V. (NYSE:STLA) worth $557.4 million. 

On August 23, Stellantis N.V. (NYSE:STLA) announced that it is exploring the option of forming a partnership with a Chinese electric vehicle manufacturer to enhance its footprint in China, the biggest EV market. Stellantis N.V. (NYSE:STLA) has been considering potential collaborations with Chinese electric vehicle companies, including Zhejiang Leapmotor Technologies Ltd. 

According to Insider Monkey’s second quarter database, 27 hedge funds were bullish on Stellantis N.V. (NYSE:STLA), with collective stakes worth just over $468 million. Karthik Sarma’s SRS Investment Management is the largest stakeholder of the company, with 8.4 million shares worth $148.5 million.  

Miller Value Partners Income Strategy made the following comment about Stellantis N.V. (NYSE:STLA) in its second quarter 2023 investor letter:

“We initiated a starter position in Stellantis N.V. (NYSE:STLA), which makes Jeep, Dodge and Fiat cars. The company has a nearly 8% dividend yield with enough net cash (cash minus debt) on the balance sheet to cover the dividend for almost five years. The company trades at 1.7x operating profits, which means the market is already expecting a likely drop in cash flow. Still, the shares appear to be worth meaningfully more than where they trade, and management is heavily aligned with stockholders with a 14% stake. They share our view that the valuation is compelling, as the company plans on repurchasing ~3% of shares outstanding this year.”

2. Ford Motor Company (NYSE:F)

Goldman Sachs’ Stake Value: $1,820,097,272

Number of Hedge Fund Holders: 40

Ford Motor Company (NYSE:F) specializes in the design, production, distribution, and maintenance of various vehicles, including Ford trucks, commercial cars, vans, SUVs, and luxury Lincoln vehicles worldwide. Additionally, Ford Motor Company (NYSE:F) is involved in the production of electric vehicles, hybrids, and plug-in hybrids. Goldman Sachs held a $1.82 billion stake in Ford Motor Company (NYSE:F) during the second quarter of 2023. 

On July 27, Ford Motor Company (NYSE:F) reported a Q2 non-GAAP EPS of $0.72 and a revenue of $42.43 billion, outperforming Wall Street estimates by $0.18 and $1.11 billion, respectively. The company is also set to pay a $0.15 per share quarterly dividend on September 1. 

According to Insider Monkey’s second quarter database, 40 hedge funds held stakes in Ford Motor Company (NYSE:F), compared to 38 funds in the prior quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the largest stakeholder of the company, with 28.90 million shares worth $437.3 million. 

Here is what Leaven Partners has to say about Ford Motor Company (NYSE:F) in its Q3 2022 investor letter:

“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), have recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”

1. Tesla, Inc. (NASDAQ:TSLA)

Goldman Sachs’ Stake Value: $3,612,445,451

Number of Hedge Fund Holders: 79

Tesla, Inc. (NASDAQ:TSLA) is involved in the design, development, manufacturing, and distribution of electric vehicles, as well as energy generation and storage systems worldwide. Tesla, Inc. (NASDAQ:TSLA) is the largest EV stock in the Goldman Sachs portfolio. Goldman Sachs owns 13.8 million Tesla, Inc. (NASDAQ:TSLA) shares as of the second quarter of 2023, worth $3.6 billion and representing 0.72% of the total 13F securities. 

On July 19, Tesla, Inc. (NASDAQ:TSLA) reported a Q2 non-GAAP EPS of $0.91 and a revenue of $24.93 billion, outperforming Wall Street estimates by $0.09 and $200 million, respectively. Revenue for the period increased 47.3% on a year-over-year basis. 

According to Insider Monkey’s second quarter database, Tesla, Inc. (NASDAQ:TSLA) was part of 79 hedge fund portfolios, compared to 82 in the prior quarter. Cathie Wood’s ARK Investment Management is a prominent stakeholder of the company, with 4.8 million shares worth $1.26 billion. 

Baron Opportunity Fund made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2023 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells EVs, related software and components, and solar and energy storage products. Following a sharp decline at the end of 2022, Tesla’s stock rebounded in the first quarter of 2023 on investor expectations that Tesla will continue to grow vehicle deliveries and maintain solid gross and operating margins despite a potential recession, competition in China, and vehicle price reductions. We wrote a long piece on Tesla last quarter and refer readers back to it, because for long-term investors not much has changed over the last three months. Tesla did hold its first Investor Day in March, and several Baron analysts and portfolio managers attended. We toured the Austin Gigafactory, drove in a Cybertruck, boarded a Semi truck, and spoke with a wide swath of Tesla senior managers. During the formal presentation, Tesla highlighted, among other things: (1) its broad and deep bench of executive talent supporting CEO Elon Musk; (2) its “Master Plan 3–Sustainable Energy for All of Earth,” which featured EVs, renewable power from solar and wind, and stationary electric storage; (3) its vehicle assembly innovations, including massive casted parts (building Model Y bodies with single front and rear castings, replacing a substantial number of parts and fastening steps), a stainless steel exoskeleton (for Cybertruck), and its next-generation highly efficient “unboxed process” for its next-gen $25,000 vehicle; (4) a future permanent[1]magnet electric motor that will not require any rare earths; and (5) the massive untapped market opportunity for commercial stationary electric storage, branded Megapack, as the world steadily shifts to renewable energy. As long-term shareholders, we have witnessed Tesla exploit its innovative Model 3/Y now-global mass-market platform to increase vehicle deliveries from barely a standing start to over 1.3 million units, while achieving industry-leading margins and reinforcing its iron-clad balance sheet to almost $23 billion in cash (and effectively no recourse debt). We expect Tesla’s next-generation EV and Megapack products to have a similar impact on company results.”

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