5 Best EV Stocks to Buy Now

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

Number of Hedge Fund Holders: 35

Rivian Automotive, Inc. (NASDAQ:RIVN) is a California-based EV company that is making a place in the EV market through its all-electric SUV R1S and electric truck R1T.

On September 28, Jordan Levy at Truist initiated coverage on Rivian Automotive, Inc. (NASDAQ:RIVN) stock with a Buy rating and a target price of $65, reflecting a potential upside of over 97% from the closing price as of September 30. The analyst believes that investors will soon see Rivian Automotive, Inc. (NASDAQ:RIVN) as a “next generation diversified tech powerhouse.” Furthermore, the strategic partnership with Amazon.com, Inc. (NASDAQ:AMZN) gives an edge to Rivian Automotive, Inc. (NASDAQ:RIVN) as compared to other original equipment manufacturers (OEMs) in the commercial market. The company’s competitive edge makes it one of the best EV stocks to buy currently.

Here’s what Baron Funds said about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q2 2022 investor letter:

“Rivian Automotive, Inc. designs, manufactures, and sells consumer and commercial electric vehicles. Shares of Rivian declined 48.2% in the second quarter as investors continued rotating out of long-duration assets and have become increasingly concerned about capital intensity and cash burn.

At the same time, Rivian continues to be impacted by supply chain issues which are causing delays in its production ramp. Rivian is addressing those challenges by diversifying its supply chain to alleviate shortages while also consolidating the number of variants in development to reduce cash burn (the company guided that current cash will be enough to support the company’s future platform launch ‘R2’ in 2025). Rivian recently reported stronger-than-expected second quarter production numbers while reiterating its annual guidance of producing 25,000 units.

As semiconductor shortages ease, we believe that the company will be able to rapidly ramp its production. We retain conviction in the shares given management’s vision, Rivian’s product positioning, the company’s relationship with Amazon.com, and its strong balance sheet. As of the end of the first quarter, Rivian had $17 billion of cash and cash equivalents, which will help it overcome the current challenges while taking advantage of the long-term opportunity as the market transitions to electric vehicles.”