In this article, we discuss 5 best car stocks to buy now. If you want to see more stocks in this selection, check out 10 Best Car Stocks To Buy Now.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 29
Rivian Automotive, Inc. (NASDAQ:RIVN) produces and sells electric automobiles and accompanying parts. The company presents a selection of pickups that can seat five passengers and sports utility vehicles that can seat seven passengers. On April 20, it was announced that the roster of vehicles that meet the requirements for the electric vehicle tax credit in the United States has been expanded yet again, with Rivian Automotive, Inc. (NASDAQ:RIVN) R1T and R1S now included in the list. If new buyers order a configuration that is under the $80,000 limit, they can receive a $3,750 credit.
On April 18, Morgan Stanley maintained an Overweight rating on Rivian Automotive, Inc. (NASDAQ:RIVN) but lowered the firm’s price target on the shares to $24 from $26. In 2022, investor confidence in Rivian Automotive, Inc. (NASDAQ:RIVN) had decreased due to production delays, industry-wide challenges, and intense competition in the electric vehicle market. However, the firm believes that there may be reasons to be optimistic about Rivian Automotive, Inc. (NASDAQ:RIVN) before the upcoming earnings report, given that the stock has already factored in much of the negative news. After updating its projections, the firm’s “bull case” target is now $45 (down from $55) and its base case target is $24.
According to Insider Monkey’s fourth quarter database, 29 hedge funds were long Rivian Automotive, Inc. (NASDAQ:RIVN), compared to 30 funds in the prior quarter. George Soros’ Soros Fund Management is the biggest stakeholder of the company, with 14.3 million shares worth $264.3 million.
Baron Asset Fund made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q4 2022 investor letter:
“Consumer Discretionary investments along with the lack of exposure to the strong performing Energy sector offset a portion of the above-mentioned gains. Within Consumer Discretionary, the underperformance of electric vehicle (EV) manufacturer Rivian Automotive, Inc. (NASDAQ:RIVN) coupled with lower exposure to this better performing sector hampered relative results. Rivian’s shares fell as investors fretted over the company’s unit economics and how macroeconomic uncertainty is impacting the EV industry.
Rivian Automotive, Inc. is an EV manufacturer producing vehicles for the consumer and corporate delivery van markets. Its shares were under pressure during the quarter. Investors remained focused on the company’s execution challenges, the implied unit economics for its vehicles, and near-term headwinds for the automotive industry stemming from a weaker global economy. Despite these headwinds, we are comfortable with Rivian’s liquidity position and its competitive position within the EV industry, which we believe will continue to grow at impressive rates. Rivian should also benefit from its positive product reviews, its integrated technology approach, and its industry partnerships.”
