5. Rivian Automotive Inc. (NASDAQ:RIVN)
Volume: 20.652 million
Average Volume (3-Month): 39.726M million
Number of Hedge Fund Holders: 37
Rivian Automotive Inc. (NASDAQ:RIVN) is an electric vehicle manufacturer, automotive technology company, and outdoor recreation company famous for its electric SUVs and pickups. The company is known for its focus on sustainability and innovative approach to EV technology, especially gaining attention for its R1T and R1S models, which are among the first electric pickups and SUVs to be widely available.
The company is known for its innovative EV tech and has formed partnerships with companies like Amazon, which has a significant stake in the company, and Rivian Automotive Inc. (NASDAQ:RIVN) plans to provide Amazon with 100,000 electric delivery vans. In late June, it signed a $5 billion deal with Volkswagen for a joint venture to develop next-generation software-defined vehicle platforms. The company has $7.7 billion in cash, positioning it for continued EV development.
It delivered 13,790 vehicles in Q2, slightly up from Q1. Production was impacted by a 25-day plant closure for upgrades. The company is undergoing cost-cutting and efficiency-boosting. These factors together contributed to the 3.3% year-over-year revenue improvement in the second quarter of 2024.
The company’s strategy centers around the Rivian Adventure Network (RAN), a dedicated network of DC fast chargers for Rivian owners. It plans to expand the RAN to 3,500 chargers by the end of 2025 and will open it to other electric vehicle brands by the end of 2024, improving charging infrastructure.
The company’s charging infrastructure is powered entirely by renewable energy, and the RAN has achieved an uptime of over 98% in 2024. With a focus on next-generation vehicles and advanced autonomous driving features, it is positioned well for future growth in the EV sector. There are plans for a new factory in Georgia and continuous software updates, making this a top active stock to invest in now.
Meridian Hedged Equity Fund stated the following regarding Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q2 2024 investor letter:
“Rivian Automotive, Inc. (NASDAQ:RIVN) is a US-based electric vehicle manufacturer focused on the design, development, and production of electric adventure vehicles, pickup trucks, and commercial delivery vans. We own Rivian because we believe the company is a future leader in the growing electric vehicle market with a strong brand, compelling products, and a vertically integrated business model. During the quarter, Rivian’s stock price was driven by its progress on cost reduction initiatives and management’s stated confidence in achieving positive gross margins by the end of 2024. The recent announcement of a joint venture with Volkswagen, involving up to $5 billion in investment, also significantly boosted Rivian’s financing outlook and validated its technology. We trimmed our position in Rivian given the strong performance in the quarter.”
