In this article, we shall discuss how billionaires love these 5 EV stocks. To see our detailed analysis of the global EV sector, go directly and see Billionaires Love These 10 EV Stocks.
5. Li Auto Inc. (NASDAQ:LI)
Hedge Fund Holdings: 28
Notable Billionaires Having Stakes in LI: Noam Gottesman, John Overdeck, Israel Englander
Based in Beijing, Li Auto Inc. (NASDAQ:LI) is a Chinese automotive company which specializes in the design, development, and sale of premium smart electric vehicles. Founded in 2015, the company has a market capitalization of $28.9 billion as of September 3, and is one of the biggest players in the global EV sector. Billionaires have been stacking up on Li Auto Inc. (NASDAQ:LI) shares for quite some time, including the likes of Noam Gottesman of GLG Partners, John Overdeck of Two Sigma Advisors, and Israel Englander of Millennium Management. Of the 28 hedge funds that had stakes in Li Auto Inc. (NASDAQ:LI) in Q2 2022, at least 15 of them were owned by billionaires.
On August 8, CLSA analyst Aaron Li initiated coverage of Li Auto Inc. (NASDAQ:LI) with a Buy rating and a HK$190 price target. According to the analyst, Li Auto (NASDAQ:LI) has achieved remarkable success in China’s family SUV market and he expects the second model launched in Q2 2022, the L9, to continue to attract family consumers. Li Auto Inc. (NASDAQ:LI) delivered more than 11,000 vehicles overall in May, showing a strong supply resilience. The company is expected to deliver about 450,000 units a year in 2022-2024, the analyst predicted in a research note.
On August 15, Li Auto Inc. (NASDAQ:LI) reported their Q2 2022 returns, posting a revenue of $1.3 billion against a consensus of $1.12 billion. Li Auto’s (NASDAQ:LI) deliveries stood at 28,687 in Q2 2022, representing a 63.2% year-over-year increase. Hedge fund sentiment around Li Auto Inc. (NASDAQ:LI) remained virtually the same, with 28 hedge funds long the stock in Q1 and Q2 of 2022. As of Q2 2022, Tiger Global Management LLC is the largest shareholder in the company, owning more than 12.8 million shares worth $490.03 million.
4. Rivian Automotive Inc. (NASDAQ:RIVN)
Hedge Fund Holdings: 35
Notable Billionaires Having Stakes in RIVN: Ken Griffin, Paul Tudor Jones, George Soros
Headquartered in Irvine, California, Rivian Automotive (NASDAQ:RIVN) is an American electric vehicle automaker and automotive technology company. The company has currently undertaken the manufacture and development of an electric sport utility vehicle and pickup truck on a skateboard platform, which will support future vehicles or be adopted by other companies. As of Q2 2022, Rivian Automotive (NASDAQ:RIVN) posted an EPS of -$1.62, beating estimates of -$1.63 by $0.01. Furthermore, the company reported a total revenue of $364 million in the second quarter of 2022.
Hedge fund sentiment around Rivian Automotive (NASDAQ:RIVN) has drastically increased in Q2 2022, with 35 hedge funds reporting stakes in the stock, compared to 29 hedge funds in Q1 2022. Of the 35 hedge funds long Rivian Automotive (NASDAQ:RIVN), at least 20 are managed by billionaires, the most prominent being Ken Griffin of Citadel Investment Group, Paul Tudor Jones of Tudor Investment Group, and George Soros of Soros Fund Management. As of the second quarter of 2022, billionaire Philippe Laffont of Coatue Management is the largest stakeholder in Rivian Automotive (NASDAQ:RIVN), having a total stake of $485.9 million.
Here is what Alger Capital had to say about Rivian Automotive (NASDAQ:RIVN) in their Q2 2022 investor letter:
“Rivian Automotive, Inc. (NASDAQ:RIVN) is a vertically integrated electric vehicle (EV) manufacturer producing consumer and commercial vehicles. Rivian (NASDAQ:RIVN) plans to capture more of the lifetime value of vehicles than traditional original equipment manufacturers by offering insurance, software like advanced driver assistance, and charging network memberships. the shares contributed to performance as Rivian’s (NASDAQ:RIVN) quarterly production rate accelerated despite industry supply chain issues.
Additionally, management reiterated its guidance and explained that it has significant pre-orders (including a large delivery van order) and increased pricing underscores healthy demand for its vehicles.”
3. Ford Motor Company (NYSE:F)
Hedge Fund Holdings: 46
Notable Billionaires Having Stakes in F: Israel Englander, Ray Dalio, Steve Cohen
Based in Dearborn, Michigan, Ford Motor Co. (NYSE:F) is an American multinational automobile manufacturer which specializes in the manufacture of ICE and EV products. It is the second largest U.S-based automaker, and fifth largest in the world based on 2015 vehicle production. In October 2014, Ford Motor Co. (NYSE:F) launched its plug-in electric vehicle initiative and the company’s portfolio now includes PEVs like Ford Ranger EV, and the Ford Focus Electric. As of Q2 2022, the company posted an EPS of $0.68, beating estimates of $0.45 by $0.23.
Investor interest in Ford Motor Co. (NYSE:F) has not changed since Q1 2022, with 46 hedge funds long the stock in Q1 and Q2 2022. Of the 46 hedge funds having stakes in Ford Motor Co. (NYSE:F) in Q2 2022, more than 26 are managed and operated by billionaires. Some of the most prominent billionaires to have significant stakes in Ford Motor Co. (NYSE:F) are Israel Englander of Millennium Management, Ray Dalio of Bridgewater Associates, and Steve Cohen of Point72 Asset Management. Billionaire Ken Griffin’s Citadel Investment Group is the biggest shareholder in Ford Motor Co. (NYSE:F), owning more than 29 million shares valued at around $323.2 million.
On August 2, Citi analyst Itay Michaeli raised the price target on Ford Motor Co. (NYSE:F) from $15 to $16, maintaining a Neutral rating on the stock. The analyst updated the targets for most automakers post Q2 results, also closing his ’90-day Upside Catalyst Watch’ on Ford Motor Co. (NYSE:F), as he believes the near-term catalysts have been realized.
Baron Funds, an asset management firm, mentioned Ford Motor Co. (NYSE:F) in their Q1 2022 investor letter, a copy of which can be obtained here. This is what they had to say:
“Ford (NYSE:F) is another example of typical industrial manufacturing business executive mindsets. The April 18, 2022, Bloomberg Businessweek cover story features Ford CEO Jim Farley behind the wheel of an electrified Ford F-150 Lightning. The article is titled, “Hey Elon, THIS is a truck.” I thought the article was terrific. One idea especially stood out to me. Since the F-150 is such a popular vehicle, it “argued for a gradual approach to electrification. Essentially the company retrofitted an existing F-150 with an electric powertrain rather than develop an entirely new truck.” No all-in financial and operation bet by this company on electrification.”
2. Tesla Inc. (NASDAQ:TSLA)
Hedge Fund Holdings: 72
Notable Billionaires Having Stakes in TSLA: Catherine D. Wood, Philippe Laffont, Ken Griffin
Based in Austin, Texas, Tesla Inc. (NASDAQ:TSLA) is an American multinational automotive and clean energy company which specializes in the design and manufacture of electric vehicles, battery energy storage from home to grid-scale, solar panels, solar roof tiles, and related products and services. It is one of the world’s most valuable companies, with a total market capitalization of $846.7 billion as of September 3. Tesla Inc. (NASDAQ:TSLA) has been a hot bed for billionaire investors, with 14 of the top 15 hedge funds long Tesla Inc. (NASDAQ:TSLA) managed by billionaires. Ken Griffin’s Citadel Investment Group is the largest shareholder in the stock, owning more than 20.8 million shares worth around $14.04 billion. Other prominent billionaires to have significant stakes in Tesla Inc. (NASDAQ:TSLA) are Catherine D. Wood of ARK Investment Management, Israel Englander of Millennium Management, and Philippe Laffont of Coatue Management.
On September 1, Piper Sandler analyst Alexander Potter raised the price target on Tesla Inc. (NASDAQ:TSLA) to $360 from $344, keeping an Outperform rating on the stock. The analyst noted that several cross-currents may cause a dip in shares of Tesla Inc. (NASDAQ:TSLA) in the coming weeks, including shorter wait times, China weakness and rising interest rates. The analyst also predicted that Tesla Inc. (NASDAQ:TSLA) will slash prices sometime in 2023. Given all this, some investors might conclude that Tesla Inc. (NASDAQ:TSLA) faces a demand problem. However, the analyst points to the contrary, stating that shorter wait times suggest improving supply, not falling demand. He boosted the price target to accurately reflect the company’s decision to increase pricing on its full self-driving software.
Hedge fund sentiment around Tesla Inc. (NASDAQ:TSLA) has decreased in the second quarter of 2022, with 72 hedge funds long the stock, compared to 80 in Q1 2022. The company posted an EPS of $0.76 in Q2 2022, beating estimates of $0.6 by $0.16.
Baron Funds, an asset management firm, mentioned Tesla Inc. (NASDAQ:TSLA) in their Q2 2022 investor letter. This is what they said:
“In 2014, before we began to invest in Tesla (NASDAQ:TSLA), I called Roger to ask whether he thought Elon Musk’s electric car business would succeed. I did not believe that Roger, an owner of dealerships that sell cars powered by internal combustion engines (ICE) would likely have a favorable opinion of Tesla’s prospects. That was principally for two reasons:
- First, automobile manufacturing and distribution is unusually complicated, capital intensive, and highly regulated, which makes profitability problematic;
- second, cars with ICE motors require extensive annual maintenance, and dealer services revenues, not profits from automobile sales, are the most important contributor to profits of perpetual licensed ICE car dealerships.
Penske Automotive Group is principally an ICE car dealer. Since electric cars are powered by batteries and need little service, franchised dealerships are incented to sell ICE not EV automobiles. Further, Roger had been a long-term director of General Motors. General Motors’ ICE automobile business would be disrupted if Tesla were successful.
Regardless, I was right to have spoken with Roger. That was since he outlined numerous issues we needed to consider, study, and question before we determined whether we believed Tesla could be a successful business…before we ultimately chose whether to invest in that company.
When we completed our initial due diligence on Tesla, which diligence has been ongoing since 2014, we decided to invest $360 million in Tesla over the next two years. I then called Roger and outlined why I thought we could earn 20 times our capital over the next 10 years. Roger was so certain I was wrong that he offered to bet me $1 million that Tesla would fail. “Roger, I can’t bet you a million dollars. First, if you are right, I couldn’t afford to pay you. Second, if I’m right, you’re my friend, and I couldn’t take your money.” We settled on a dinner bet…” (Click here to see the full text)
1. General Motors Company (NYSE:GM)
Hedge Fund Holdings: 75
Notable Billionaires Having Stakes in GM: Warren Buffett, D.E Shaw, Ken Griffin
Headquartered in Detroit, Michigan, the General Motors Company (NYSE:GM) is an American multinational automotive manufacturing company which operates manufacturing plants in eight countries. Its four core brands include Chevrolet, Buick, GMC, and Cadillac, making it the largest automaker in the United States. On July 27, Wedbush analyst Daniel Ives lowered the price target on General Motors (NYSE:GM) to $42 from $50, maintaining an Outperform rating on the stock. The analyst noted that General Motors (NYSE:GM) reported Q2 results which were marred with a myriad of supply chain issues, which he views as a clear near-term headwind for the Detroit-based stalwart. Nonetheless, Ives ascertained that General Motors (NYSE:GM) has a strong and detailed EV vision looking at the company’s plans over the next decade. On the guidance front, the company reiterated its guidance for full year 2022 with a healthy second half of the year ramp now on the horizon.
Investor interest around General Motors (NYSE:GM) has slightly decreased in Q2 2022, with 75 hedge funds long the stock, compared to 76 in the preceding quarter. Famous billionaires like Warren Buffett of Berkshire Hathaway, D.E Shaw of D E Shaw, and Ken Griffin of Citadel Investment Group have stakes in the company.
Here is what Diamond Hill Capital had to say about General Motors (NYSE:GM) in their Q1 2022 investor letter, a copy of which can be obtained here:
“General Motors—and the auto industry in general—continues to face headwinds related to supply chain disruptions and raw material cost inflation. In addition, uncertainty surrounding global energy markets due to inflation and the conflict in Ukraine has created a greater economic burden on consumers, which tends to slow automotive sales.”
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