5. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 26
Share Price as of August 7: $13.78
Rivian Automotive, Inc. (NASDAQ:RIVN) is engaged in designing, developing, manufacturing, and selling electric vehicles and related accessories. The company produces two all-electric models for consumers, the R1T, which is a pickup truck, and the R1S, an SUV.
Rivian Automotive (NASDAQ:RIVN) is also working on delivering an initial order of 100,000 specially designed electric delivery vans for Amazon.
Additionally, Rivian Automotive (NASDAQ:RIVN) offers a range of consumer services including digital financing and leasing options, telematics-based insurance, and vehicle maintenance and repair. The company operates the Rivian Adventure Network, which includes Direct Current fast chargers, and provides access to the Combined Charging Standard. It also offers FleetOS, a comprehensive fleet management subscription platform.
Rivian Automotive (NASDAQ:RIVN) is one of the best EV stocks under $50. In Q1, 26 hedge funds had investments in the stock worth $349.178 million.
Rivian Automotive (NASDAQ:RIVN) is making significant strides in the EV market as highlighted by a substantial new investment from Volkswagen. At the end of June, the company secured a major commitment from the global automotive leader, starting with a $1 billion investment.
Over the next two years, Volkswagen plans to invest up to $5 billion in Rivian Automotive (NASDAQ:RIVN). This includes a $2 billion purchase of the company’s common stock and another $2 billion for the establishment of a joint venture (JV). The JV will focus on developing advanced electrical architecture and software technology. As part of the agreement, Rivian Automotive (NASDAQ:RIVN) will license its existing intellectual property to the new venture.
The partnership could bring Rivian Automotive (NASDAQ:RIVN) an additional $4 billion if it meets specific milestones and obtains regulatory approvals. The transaction is expected to be finalized by the end of the year. This significant investment not only boosts the company’s financial position but also supports its efforts to advance EV technology and expand its market reach.
Meridian Hedged Equity Fund stated the following regarding Rivian Automotive, Inc. (NASDAQ:RIVN) in its first quarter 2024 investor letter:
“Rivian Automotive, Inc. (NASDAQ:RIVN) is a US-based manufacturer of electric vehicles, namely the R1T pickup truck and R1S SUV. They also have exposure to the commercial vehicle market with their electric delivery vans (EDVs) that are sold to companies like Amazon. The company has faced challenges amid the broader slowdown in electric vehicle demand and rising interest rates. This has contributed to Rivian underperforming expectations over the past few quarters. Rivian has also incurred losses as it continues to invest in the development of its products and manufacturing capabilities. We own Rivian in a hedged structure, which provides a significant margin of safety. Despite the near[1]term challenges, several factors provide optimism that Rivian can emerge as a long-term winner in the EV market. Rivian’s balance sheet is strong, with a substantial cash position that enables the company to continue investing in its growth and navigate through the current economic headwinds. Rivian is also unveiling the R2, which is a smaller and more affordable EV platform that will open the company’s products to a wider customer base. Lastly, Rivian’s investment in the enhancement of its production capabilities should improve the company’s manufacturing efficiency and drive a path to profitability. We continue to hold the company in a hedged structure.”
