Is it a Wise Choice to Invest in Tesla (TSLA)?

Grantham Mayo Van Otterloo & Co. LLC, an asset management firm, published its first-quarter 2021 investor letter – a copy of which can be downloaded here. In its first-quarter letter, the fund mentioned that there are always risks in the resources sector, and they believe investors are likely to be rewarded with a compelling mix of strong returns, inflation protection, and diversification. Try to spend some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, GMO LLC mentioned Tesla, Inc. (NASDAQ:TSLA) and explained its insights for the company. Founded in 2003, Tesla, Inc. (NASDAQ:TSLA) is an Austin, Texas-based automotive and clean energy company with a $721.7 billion market capitalization. Tesla, Inc. (NASDAQ:TSLA) delivered a -34.07% return since the beginning of the year, while its 12-month returns are up by 14.23%. The stock closed at $696.69 per share on June 10, 2022.

Here is what GMO 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 (NASDAQ:TSLA). At its Battery Day last year, Tesla 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.”

Our calculations show that Tesla, Inc. (NASDAQ:TSLA) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Tesla, Inc. (NASDAQ:TSLA) was in 80 hedge fund portfolios at the end of the first quarter of 2022, compared to 91 funds in the previous quarter. Tesla, Inc. (NASDAQ:TSLA) delivered a -12.40% return in the past 3 months.

In May 2022, we also shared another hedge fund’s views on Tesla, Inc. (NASDAQ:TSLA) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.