13 Best Car Stocks to Buy in 2025

Page 4 of 11

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

Number of Hedge Fund Holders: 40

Rivian Automotive, Inc. (NASDAQ:RIVN) is an automaker that creates and manufactures electric vehicles, as well as software and services. The firm launched its consumer car business with the R1 platform, which includes two vehicles: the R1T and the R1S. The company’s two reportable segments are the Software and Services segment and the Automotive segment, which generates the majority of its revenue. The manufacturing and sale of new EVs, as well as the sale of regulatory credits produced by the production and sale of EVs, provide the Automotive reportable segment with its revenue and cost of revenue. Services related to vehicle electrical architecture and software development, vehicle repair and maintenance, and remarketing are the key sources of income and expenses for the Software and Services reportable category. The stock grew by more than 29% in the past year, making it one of the Best Auto Stocks.

Rivian Automotive, Inc. (NASDAQ:RIVN) generated a $170 million gross profit in the fourth quarter of 2024 as a result of rising fixed costs, revenue per delivered unit, and variable costs. The company believes these upgrades will benefit it in the long run and position it to turn a little profit in 2025. It reported record revenues for the fourth quarter of 2024, driven by sales of regulatory credit, software, and services expansion, and higher R1 average selling prices as the Tri-Motor offering became more widely available. Overall, revenue jumped 33% year over year in Q4 2024.

Rivian Automotive, Inc. (NASDAQ:RIVN) is making strides toward profitability. In Q4 2024, it declared its first quarterly gross profit of $170 million. The company’s balance sheet shows $7.7 billion in cash, showing that it can afford to lose considerable amounts as output increases. However, if the company meets a setback, it may face significant financial challenges. The company’s valuation is around $13 billion, which seems fair considering its sales.

Page 4 of 11