10 Stocks That Could 10X Over the Next 5 Years

4) Rivian Automotive, Inc. (NASDAQ:RIVN)

Number of Hedge Fund Holders: 37

Rivian Automotive, Inc. (NASDAQ:RIVN) designs, develops, manufactures, and sells electric vehicles and accessories.

The company continues to focus on advancements in production and believes that strategic partnerships will act as primary tailwinds. The JV with Volkswagen should result in significant cost savings, operating efficiencies, and future revenues. Rivian Automotive, Inc. (NASDAQ:RIVN) continues to focus on vertical integration and cost reductions through material and supplier cost savings. Moving forward, Rivian Automotive, Inc. (NASDAQ:RIVN) should be aided by progression in gross profit with the help of improved variable cost, fixed cost leverage, and a rise in revenue per delivery unit.

The company’s product lineup consists of the R1T pickup truck, R1S SUV, and Electric Delivery Van (EDV). It continues to focus on expanding its offerings with the highly anticipated R2 platform, which will be launched in H1 2026. The R2 line should broaden Rivian Automotive, Inc. (NASDAQ:RIVN)’s customer base.

The R2 platform can act as a critical value driver, with industry veterans expecting a market size that can be potentially 7-10 times larger as compared to the R1 platform. Moreover, the expansion into more accessible price points might fuel demand. Rivian Automotive, Inc. (NASDAQ:RIVN)’s focus on software capabilities and continuous vehicle updates via scalable architecture is seen as a potential differentiator.

Analyst at Barclays upped its price target on the shares of Rivian Automotive, Inc. (NASDAQ:RIVN) from $14.00 to $16.00, giving an “Equal-weight” rating on 16^th July. Meridian Funds, managed by ArrowMark Partners, released its second quarter 2024 investor letter. Here is what the fund said:

“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.”