Yahoo Finance Tesla (TSLA) Stock Dropped on Missed Analyst Estimates
Fred Alger Management, an investment management company, released its “Alger Focus Equity Fund” first quarter 2024 investor letter. A copy of the letter can be downloaded here. US markets performed strongly in Q1, with the S&P Index up 10.56%. Class A shares of the fund outperformed the Russell 1000 Growth Index in the quarter. Information Technology and industrial sectors boosted the relative performance while financials and consumer staples weighed down the fund’s performance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Alger Focus Equity 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. Tesla, Inc.’s (NASDAQ:TSLA) one-month return was 38.47%, and its shares lost 14.21% of their value over the last 52 weeks. On July 2, 2024, Tesla, Inc. (NASDAQ:TSLA) stock closed at $231.26 per share with a market capitalization of $784.286 billion.
Alger Focus Equity Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q1 2024 investor letter:
"Tesla, Inc. (NASDAQ:TSLA) is an electric vehicle manufacturer with a technological lead in its large and rapidly growing addressable market. In our view, Tesla is a transportation company that is setting the pace for industry innovation. During the quarter, shares detracted from performance after the company reported fiscal fourth quarter results, where revenues and earnings missed analysts' estimates. Weaker-than-expected automotive revenues were partly driven by a reduced average selling price, which was down 15% year-over-year. Moreover, management decided to forgo providing volume guidance, though they did acknowledge they are in a lower growth phase given the uncertain consumer environment particularly as it relates to high ticket purchases."
Tesla, Inc. (NASDAQ:TSLA) is not on our list of 31 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 the first quarter, Tesla, Inc.’s (NASDAQ:TSLA) revenue fell by -8.70% compared to the same period last year and the company reported a negative free cash flow of $2.5 billion in the quarter. (See the details here). While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We discussed Tesla, Inc. (NASDAQ:TSLA) in another article and shared the list of best consumer cyclical stocks to buy. Tesla, Inc. (NASDAQ:TSLA) detracted from the performance of Baron Partners Fund in Q1 2024. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
