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Complex Macro Economic Environment Dragged Tesla, Inc. (TSLA) in Q1

Baron Funds, an investment management company, released its “Baron Fifth Avenue Growth Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund increased 12.6% (Institutional Shares) in the first quarter compared to an 11.4% gain for the Russell 1000 Growth Index and a 10.6% increase for the S&P 500 Index. Despite higher interest rates, the US economy continues to surpass expectations. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Baron Fifth Avenue Growth Fund highlighted stocks like Tesla, Inc. (NASDAQ:TSLA), in the first quarter 2024 investor letter. Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems. The one-month return of Tesla, Inc. (NASDAQ:TSLA) was -7.63%, and its shares lost 7.21% of their value over the last 52 weeks. On May 24, 2024, Tesla, Inc. (NASDAQ:TSLA) stock closed at $179.24 per share with a market capitalization of $571.632 billion.

Baron Fifth Avenue Growth Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its first quarter 2024 investor letter:

"Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells electric vehicles (EVs), related software and components, and solar and energy storage products. Shares fell 29.3% in the first quarter as the core automotive segment is facing headwinds due to a complex macroeconomic environment, factory shutdowns, growing competitive risks in China, and vehicle price reductions which are pressuring gross margins. During the first quarter of 2024, production was also negatively impacted by the Red Sea maritime supply[1]chain interferences, sabotage in a Tesla factory’s power supply in Berlin, and a factory closure for the launch of the refreshed Model 3. We remain shareholders. Tesla commenced delivery of its highly anticipated Cybertruck pickup, which features new technologies within the car and its manufacturing lines. Tesla also launched version 12 of its Full Self Driving product, which shows significant progress from prior versions and increases the probability that Tesla’s data collection at scale, and verticalized software and hardware approach will position Tesla as a leader in the future for autonomous driving and shared mobility. We also expect energy storage sales to continue to grow over the coming years as the adoption of renewable energy continues. Lastly, we believe Tesla’s core automotive segment will recover with the company remaining a leader in the EV market, which continues to expand with EVs still accounting for only around 10% of vehicle sales globally."

Best EV Stocks Under $50
Best EV Stocks Under $50

Tesla, Inc.’s (NASDAQ:TSLA) trailing 12 months revenue is $94.75 billion and its year over year quarterly revenue growth rate is -8.70%. In the first quarter the company had a negative free cash flow of $2.5 billion. (See the details here).


Tesla, Inc. (NASDAQ:TSLA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 74 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of the first quarter which was 82 in the previous quarter.

In another article, we discussed Tesla, Inc. (NASDAQ:TSLA) and shared the list of best ARK stocks to buy. As mentioned in its latest investor letter, Aristotle Atlantic's Focus Growth Strategy sold its holdings in Tesla, Inc. (NASDAQ:TSLA). In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

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