Hedge Funds Were Right About MicroStrategy Incorporated (MSTR) and 4 Other Tech Stocks

In this article, we discuss MicroStrategy Incorporated (MSTR) and 4 other tech stocks that hedge funds were right about. If you want to read about some more tech stocks that hedge funds were right about, go directly to Hedge Funds were Right About MicroStrategy Incorporated (MSTR) and 9 Other Tech Stocks.

5. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders in Q1 2022: 80    

Number of Hedge Fund Holders in Q4 2021: 91 

Tesla, Inc. (NASDAQ:TSLA) markets electric vehicles and clean energy solutions. On June 16, the company revealed that it was increasing the prices of all Tesla car models in the US in light of surging inflation and supply chain issues that led to a massive increase in the prices of raw materials. Tesla has paused hiring across the globe after lockdowns in China affected production and also cut about 10% of jobs. Tesla chief Musk has warned of a recession as well, indicating that the company is planning for further pain ahead. 

On June 14, Morgan Stanley analyst Adam Jonas maintained an Overweight rating on Tesla, Inc. (NASDAQ:TSLA) stock with a price target of $1,300, noting that the firm had a history of making up lost ground with accelerated deliveries towards the back end of the year. 

At the end of the first quarter of 2022, 80 hedge funds in the database of Insider Monkey held stakes worth $11 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 91 in the previous quarter worth $12 billion.

Here is what Grantham Mayo Van Otterloo & Co. 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, Inc. (NASDAQ:TSLA). At its Battery Day last year, Tesla, Inc. (NASDAQ:TSLA) 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.”