In this article, we will take a look at the 5 best EV stocks under $50. To see more such companies, go directly to 16 Best EV Stocks Under $50.
5. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 25
Chinese EV company Li Auto Inc. (NASDAQ:LI) is having a remarkable 2023, having gained about 54% in the year through October 24. As of the end of the second quarter of 2023, 25 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in Li Auto Inc. (NASDAQ:LI). The biggest stakeholder of Li Auto Inc. (NASDAQ:LI) was John Overdeck and David Siegel’s Two Sigma Advisors which had a $129 million stake in the company.
In September Li Auto Inc. (NASDAQ:LI) delivered 36,060 vehicles which was a whopping 212.7% Y/Y increase and a new monthly record.
4. Stellantis N.V. (NYSE:STLA)
Number of Hedge Fund Holders: 27
Stellantis N.V. (NYSE:STLA) shares have gained about 29% year to date through October 24. Earlier this year Stellantis N.V. (NYSE:STLA) revealed its new EV platform to power electric cars, crossovers, and SUVs.
A total of 27 hedge funds in Insider Monkey’s database had stakes in Stellantis N.V. (NYSE:STLA).
3. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 37
Chinese EV company Rivian Automotive, Inc. (NASDAQ:RIVN) moved this month after receiving bullish comments from multiple analyst firms. Needham reaffirmed Rivian Automotive, Inc. (NASDAQ:RIVN)’s addition to Conviction picks after the company’s Q3 delivery numbers. Needham’s analyst Chris Pierce said Rivian Automotive, Inc. (NASDAQ:RIVN)’s risk/reward is at its most compelling level since Needham introduced coverage in March. Needham has a $31 price target on Rivian Automotive, Inc. (NASDAQ:RIVN).
Investment firm UBS has also upgraded Rivian Automotive, Inc. (NASDAQ:RIVN) to Buy from Neutral. UBS has a $24 price target on the stock.
Baron Fifth Avenue Growth Fund made the following comment about Rivian Automotive, Inc. (NASDAQ:RIVN) in its second quarter 2023 investor letter:
“During the second quarter, we also added to our position in EV manufacturer Rivian Automotive, Inc. (NASDAQ:RIVN). After a complex period since the company’s IPO, in which Rivian tried to ramp multiple vehicles simultaneously while struggling to overcome unprecedented supply-chain bottlenecks, the company seems to have turned the corner. Production is now starting to scale up, which should help the company improve its plant utilization and subsequently help gross margins. The company is making notable progress in cost improvements by renegotiating with its suppliers, utilizing its larger scale to get better pricing, as well as, incorporating various technological advancements that would improve its cost structure while also improving the vehicles’ performance (for example it’s Enduro drive unit which is progressing ahead of plan).”
2. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 40
Ford Motor Company (NYSE:F) is making headways in the EV industry and launching new technologies that are setting new standards. Ford Motor Company (NYSE:F) recently unveiled its compressed air engine technology which, according to Ford’s CEO, will “bankrupt the entire EV industry.”
In its Q2 earnings call, the company’s management talked in detail about Ford Motor Company (NYSE:F)’s EV initiatives:
“While EV adoption is still growing, the paradigm has shifted. EV price premiums over internal combustion vehicles fell more than $3,000 in the second quarter and nearly $5,000 in first half. We expect the EV market to remain volatile until the winners and losers shake out, and we are confident from a brand, from our incredible product strategy, our software, our scale and our cost position, we will be one of the winners long term. Why do I say that?
We moved quickly to establish our EV nameplates in the unique segments, not like others, the Lightning, the Maki, the ETrans. We’re building EV brand lowers. It’s critical. Many of our EV customers are all new to Ford. This is a significant asset to Ford given our new Gen 2 products and profitability that we’ll be launching soon. For Gen 2, we focused on fewer, higher volume models in the right segments to take advantage of our strengths and knowledge of customers, even Conquest customers. For example, work vehicles, pickups for retail customers and spacious seven-passenger SUVs. I am so glad we didn’t bet the farm on two row crossovers ICE like EV platforms, like so many have. We moved early on LFP, especially production in the U.S., giving us a diversity of chemistry cost advantage.”
Read the full earnings call transcript here.
Here is what Leaven Partners has to say about Ford Motor Company (NYSE:F) in its Q3 2022 investor letter:
“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), has recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6%[2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”
1. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 72
General Motors Company (NYSE:GM) is one of the traditional car companies that are staunchly commited to an all-electric future. In 2021 General Motors Company (NYSE:GM) announced it plans to stop selling gas burning cars by 2025. General Motors Company (NYSE:GM) is rolling out several EV models in the market.
Patient Capital Opportunity Equity Strategy made the following comment about General Motors Company (NYSE:GM) in its Q2 2023 investor letter:
“We like other names mostly ignored by the market for similar reasons. Names like Expedia (EXPE), General Motors Company (NYSE:GM), and Delta Air Lines. These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”
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