The reason for hedge funds worm capital‘s concentration in Tesla Inc. TSLA is the founder and chief investment officer due to his relatively early belief in the electric vehicle manufacturer’s dominance Arne Alsin Reportedly said during an investor question-and-answer session hosted by the fund.
What happened: Owning Tesla in 2022 is like owning apple inc AAPL in 2007, even 2003 or even earlier, Alsin said, according to Q&A session transcripts shared by Tesla influencers Merritt Saeger.
“And that company is going to be way, way bigger than Apple in my opinion,” he said. He also suggested having more confidence in the fund’s Tesla position, which will produce significant returns going forward.
“I think we’ve barely scratched the surface of what this company can become,” Alsin said. His growth forecasts for Tesla are “far, far” above consensus expectations, he added.
See also: Is Tesla’s hypergrowth story over or just beginning? That’s what 2 top analysts say
Worm Capital’s CEO also predicted a “wave of activity” around Tesla in the investment community and on Wall Street.
Calling Tesla “Wall Street’s favorite stock,” Alsin said it has all the right ingredients, including rapid growth into huge, global end markets, fast-growing gross and net margins, a wide moat, endless demand for products, and potential benefits from energy storage. autonomous driving, bots and AI.
He also said he was unperturbed by the hatred in some quarters of the investment community.
“A lot of the so-called “smart money” on Wall Street wouldn’t touch amazon incAMZN in the 2010s, but had no problem buying it in the 2020s,” Alsin said.
Alsin said the fund’s portfolio is now dominated by Tesla, Spotify Technologies SA SPOT and Amazon.
Price promotion: In premarket trading on Friday, Tesla shares fell 1.81% to $298.25, according to Benzinga Pro data.