In this article, we discuss the 5 hot EV stocks to buy now. If you want to read about some more EV stocks that are active in the market, go directly to 11 Hot EV Stocks To Buy Now.
5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 35
Avg Volume: 38.85 million
Rivian Automotive, Inc. (NASDAQ:RIVN), headquartered in Irvine, California, is an automotive company specializing in the design, development, manufacturing, and sale of electric vehicles and related accessories. The company is positioned to capitalize on the ongoing electrification trend within the auto industry as the shift away from fossil fuels gains momentum.
As of the end of the third quarter of 2023, 35 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Rivian Automotive, Inc. (NASDAQ:RIVN). The most significant stakeholder of Rivian Automotive, Inc. (NASDAQ:RIVN) was Daniel Sundheim’s D1 Capital Partners which owns a $327.38 million stake in the company.
Here is what Baron Global Advantage Fund has to say about Rivian Automotive, Inc. (NASDAQ:RIVN) in its Q3 2023 investor letter:
“Shares of Rivian Automotive, Inc., a U.S.-based electric vehicle manufacturer, continued their volatile trading, and after declining during the first half of 2023, rose 45.7% during the third quarter. Rivian’s unit economics are improving as a result of several factors: i) the company’s production rate is increasing, which enables it to better absorb fixed costs; ii) Rivian is ramping-up the usage of more price effective technologies, such as LFP batteries and its in-house developed motor, Enduro; and iii) the company is benefiting from renegotiated supplier agreements, as its scale and purchasing power have significantly increased over the last few years. Management expects continued progress in profitability ahead as Rivian further scales production. We remain shareholders and believe that the release of Rivian’s new smaller SUV dubbed R2, which is planned for early 2024, would enable the company to compete in the higher volume SUV segment, and significantly expand its addressable market. On the liquidity front, we expect the company to raise additional funds to support its longer-term business plans.”
4. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 43
Avg Volume: 52.89 million
Headquartered in Dearborn, Michigan, United States, Ford Motor Company (NYSE:F) stands as an American multinational automobile manufacturer. Under the Ford brand, the company specializes in selling automobiles and commercial vehicles, while its luxury cars fall under the distinguished Lincoln brand.
On November 1, Barclays upgraded the rating of Ford Motor Company (NYSE:F) stock to Overweight, maintaining a $14 price target. The firm emphasized the stock’s “historically cheap valuation,” and analyst Dan Levy suggested that an appealing upside could materialize in the event of a potential “modest reversal of sharply negative sentiment.”
As of Q3 2023, 43 of the elite hedge funds tracked by Insider Monkey held Ford Motor Company (NYSE:F) shares, valued at $1.3 billion. Ken Fisher’s Fisher Asset Management was its largest hedge fund shareholder with ownership of 55.6 million shares valued at $691 million.
3. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 53
Avg Volume: 6.75 million
Headquartered in Arizona, ON Semiconductor Corporation (NASDAQ:ON) is a company specializing in the design, production, and distribution of semiconductors and associated solutions. With a global presence, the company operates 19 manufacturing sites, 43 design centers, and 8 solution engineering centers across multiple countries. Additionally, ON Semiconductor Corporation (NASDAQ:ON) is a key supplier of chips essential to electric vehicles (EVs), extending its reach to encompass vital driver-assistance features like cameras and sensors.
On October 31, ON Semiconductor Corporation (NASDAQ:ON) unveiled its Q3 earnings results, reporting a non-GAAP EPS of $1.39, surpassing analysts’ expectations by $0.05. The company’s revenue reached $2.18 billion, exceeding estimates by $30 million.
As of the end of the September quarter, 53 out of the 910 hedge funds tracked by Insider Monkey had invested in ON Semiconductor Corporation (NASDAQ:ON).
Aristotle Atlantic Partners, LLC mentioned ON Semiconductor Corporation (NASDAQ:ON) in its first quarter 2023 investor letter. Here is what it said:
“ON Semiconductor Corporation (NASDAQ:ON) supplies analog, standard logic and discrete semiconductors for data and power management. The company provides industry leading intelligent sensing and power solutions to help its customers solve the most challenging problems and create cutting edge products for a better future. Its extensive portfolio of sensors, power management, connectivity, custom and SoC, analog, logic, timing and discrete devices helps customers efficiently solve design challenges in advanced electronic systems and products. ON Semiconductor’s devices perform power and signal control, and interface functions appear in a wide range of end-user markets including automotive, communications, computing, consumer, medical, industrial, networking, telecom and aerospace/defense. Most of ON Semiconductor’s sales come from the Asia/Pacific region.
We see ON Semiconductor attractively valued and leveraged to attractive areas of end-market growth over the next few years. The company is gaining both semiconductor content and seeing better pricing tailwinds due to demand exceeding supply and more complex semiconductor content. We see these trends continuing to provide 2023 tailwinds and fully expect strong growth rates in electric vehicle penetration over the next five years.”
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 66
Avg Volume: 18.23 million
General Motors Company (NYSE:GM) is a prominent multinational automotive corporation engaged in the manufacturing and global sale of trucks, crossovers, cars, and automotive parts and accessories. The company oversees major brands such as Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling. In August of 2023, General Motors Company (NYSE:GM) announced its leadership in a $60 million investment in Mitra Chem, a two-year-old company based in Mountain View, California. Mitra Chem specializes in utilizing artificial intelligence to expedite the development of lithium-ion battery materials. This collaboration aims to assist GM in advancing iron-based cathode active materials, including lithium manganese iron phosphate (LMFP), for potential use in some of GM’s next-generation Ultium batteries post-2025.
In Q3 2023, General Motors Company (NYSE:GM) showcased a robust quarterly performance. Its revenue experienced a 5% year-over-year increase, reaching $44.1 billion, while net income, although down by 7% year-over-year, amounted to $3.1 billion. The company surpassed consensus estimates for EPS by $0.37, reporting quarterly figures of $2.20. Following the earnings release, RBC Capital analyst Tom Narayan increased the price target for General Motors Company (NYSE:GM) shares to $48 from $47, maintaining an ‘Outperform’ rating.
By the close of the third quarter of this year, 68 out of 910 hedge funds tracked by Insider Monkey’s database had also invested in General Motors Company (NYSE:GM) shares. The largest investor is Natixis Global Asset Management’s Harris Associates, with a substantial $1.17 billion investment.
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.”
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 81
Avg Volume: 121.67 million
Headquartered in Austin, Texas, Tesla, Inc. (NASDAQ:TSLA) is an American multinational company at the forefront of electric vehicles and sustainable energy solutions. Tesla is renowned for its groundbreaking designs and manufacturing of electric cars, along with providing stationary battery energy storage solutions suitable for both household and grid-scale applications. The company also offers solar panels, solar shingles, and related products and services.
In Q3 2023, Tesla, Inc. (NASDAQ:TSLA) achieved a production milestone of 430,488 vehicles, delivering over 435,000 units. Tesla’s global manufacturing footprint comprises six facilities, including its original plant in California and gigafactories located in Nevada, New York, Shanghai, Texas, and Berlin.
Insider Monkey’s third-quarter data indicates a positive sentiment from 81 hedge funds towards Tesla (NASDAQ:TSLA), reflecting an increase from the 79 funds in the preceding quarter. Notably, Catherine D. Wood’s ARK Investment Management emerged as a significant shareholder during the quarter, holding a stake valued at $1.02 billion.
Here’s what Baron Funds said about Tesla, Inc. (NASDAQ:TSLA) in its Q2 2023 investor letter:
Many factors contributed to the strong performance of our largest Disruptive Growth position, Tesla, Inc. (NASDAQ:TSLA), in the period. Investors’ concerns regarding Tesla in 2022 continue to dissipate, and the company’s business has continued to grow materially, although at below peak margins. Tesla’s deliveries in China are recovering. The company’s newest factory in Texas has ramped production and should contribute to improved domestic sales and margins. U.S. government policies have lowered the cost to own Tesla vehicles, while also reducing the company’s battery production expenses.
We continue to believe that Tesla is only scratching the surface of its potential. We regard announced partnerships between Tesla and its competitors in the quarter as important. In early June, Tesla agreed to provide Ford Motors access to Tesla’s electric vehicle (EV) charging technology and network. Other traditional and pure EV manufacturers, including General Motors, Rivian, and Volvo, quickly followed suit. We expect additional charging partnerships to ensue. In our view, these relationships validate Tesla’s charging technology and infrastructure as superior to other standards. Consolidation around a single technology should accelerate charging infrastructure deployment, diminish the risk of Tesla’s technology becoming obsolete, and lessen a key concern of hesitant EV purchasers. EV adoption is at a tipping point. And Tesla, with its approximately 60% domestic market share of EVs, should be the most important beneficiary of this shift…” (Click here to read the full text).
You can also look at the 12 Most Undervalued Blockchain Stocks To Buy According To Hedge Funds and the 12 Best Healthcare Stocks For the Long-Term.
